Gold extends recovery momentum, jumps to fresh session peak
|Gold built on to its tepid recovery move, from session low level near $1165 region, and has now jumped to a fresh session peak during early NA session.
Currently trading around $1176 level, the precious metal was seen benefitting from a mild greenback retracement, as measured by the overall US Dollar Index. Weaker greenback tends to boost demand for dollar-denominated commodities - like Gold.
The recovery, however, lacked conviction and momentum as the prevalent upbeat sentiment around equity markets is likely to weigh on the metal's safe-haven investment appeal. Moreover, growing expectations of further interest rate-hike by the Federal Reserve, beyond December meeting, is also driving flows away from non-yielding yellow metal.
Hence, next week's FOMC meeting remains the next big fundamental trigger, which would be a key determinant of the metal's near-term trajectory. In the meantime, broader market risk sentiment would derive the metal's safe-haven demand and provide some impetus for short-term traders.
Technical levels to watch
Immediate resistance on the upside is pegged at $1180-81 region above which the recovery momentum could get extended, beyond weekly high resistance near $1188 level, towards its next major hurdle near $1193-95 region. On the downside, $1170-69 area now becomes immediate support to defend, which if broken could accelerate the slide towards recent 10-month lows support near $1157 region, en-route its next major support near $1152-50 region.
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