Gold trades comatose near $1230

The precious metal continues to hold on to its limited daily gains despite the positive consumer confidence data from the United States. At the moment, Gold is gaining 0.33% at $1230.50.

Inflation expectations dropped

Although the index of consumer sentiment, published by the University of Michigan, improved to 97.6 in March from 96.3 in February, the inflation expectations component declined for the same period. The 1-year inflation expectations dropped to 2.4% from 2.7%, while the 5-year figure fell to 2.2% from 2.5%, not allowing the participants to lean towards the USD.

US: Consumer sentiment remained quite favorable in early March

The yellow metal is struggling to gain further momentum on Friday, but on a weekly basis, it's still poised to have its best performance since early February.However, the metal still seems to be trapped between the weak greenback and the positive market sentiment. Furthermore, historical data suggests that Gold prices in the months of March and May have dropped consistently for the past decade. 

Technical levels

The 23.6% Fibo retracement of the uptrend witnessed from late December to the end of February at $1233 formed a strong resistance following the FOMC fueled the upsurge in the precious metal. A break above that level could open the door to $1237 (Mar. 5 high) and $1252 (200-DMA). On the downside, $1223 (50-DMA) is the firs technical support followed by $1212 (Fib. 50%) and $1200 (psychological level).