Gold stages minor recovery from neighborhood of 100-DMA

Extending its recovery from Wednesday's low of $1218, Gold climbed further on Thursday to $1234 before trimming its gains to currently trade near $1229 on some profit taking move witnessed in the greenback.

On Wednesday, the precious metal extended its slide for sixth consecutive day and dropped to its lowest level since early April, nearly testing 100-day SMA important support. The metal managed to bounce off day's through as traders seemed to cover their short positions. Moreover, USD bulls also seemed to turn cautious at higher levels ahead of Thursday's US durable goods order and weekly unemployment claims data and Fed Chair Janet Yellen's speech on Friday.

After surging to $1300 handle, gold prices had remained under pressure on expectations that the US Federal Reserve would increase rates as early as June, which reduces demand for dollar-denominated commodities, including gold.

From technical perspective, the metal is rebounding from 100-day SMA support and a follow through buying interest beyond day's peak would open room for further near-term recovery. Meanwhile a convincing break below 100-day SMA strong support would increase its vulnerability to continue sliding in the near-term.

Technical levels to watch

Momentum above $1234-35 day's peak resistance seems to assist the commodity to extend its recovery immediately towards an important support break-point, now turned resistance near $1244-45 region, also nearing 50-day SMA.

Conversely, renewed selling pressure, leading to a convincing break below 100-day SMA support near $1215-17 region, seems to drag the commodity below $1200 round figure mark support towards Feb. lows support near $1190 level. Moreover, below 100-day SMA, the commodity remains vulnerable to continue drifting lower towards testing the very important 200-day SMA support, currently near $1160-62 region.