Gold consolidating previous session’s up-surge to three-month tops

Gold snapped three consecutive days of winning streak and traded with mild negative bias, consolidating previous session's strong up-surge beyond 100-day SMA hurdle to three-month tops.

Following Friday's mixed US jobs report, receding expectations of another Fed rate-hike action in the near-term benefitted the yellow metal on Monday, for the third consecutive day. This coupled with risk-off mood, led by uncertainty over the US President Donald Trump's policies, helped the yellow metal to clear 100-day SMA strong hurdle and jump to its highest level since Nov. 11. 

On Tuesday, the precious metal retreated a bit and was trading around $1231 region in wake of broad based greenback recovery, as measured by the key US Dollar Index. A strong buck tends to dent demand for dollar-denominated commodities - like gold. 

However, sliding US Treasury bond yields might act as a headwind for the greenback's ongoing recovery move and limit and sharp slide for the precious metal.

Technical levels to watch

Weakness below $1230 level now seems to find support at 100-day SMA resistance break-point near $1123 region, which is followed by support at $1217 horizontal zone. On the upside, sustained momentum above multi-month highs resistance near $1235 level now seems to pave way for continuation of the metal’s near-term upward trajectory towards $1250 resistance area.