Gold aiming back towards 200-DMA

Having posted a session low at $1262, Gold inched higher and has now reversed Monday's minor losses but remained below the very important 200-day SMA. 

Currently trading at a fresh session high level around $1269 region, cautious opening for the European equity markets supported the precious metal's safe-haven appeal and assisted a minor recovery from session lows. 

On Monday, the precious metal reversed early gains and turned lower amid growing expectations that the Federal Reserve would eventually hike rates in December, which tends to weigh on non-yielding assets. Moreover, Fed rate-hike bets was seen boosting the greenback, with the broader US Dollar Index rising to fresh 8-month highs, and further dented demand for dollar-denominated commodities - like gold. 

Later during NA session, the release of Conference Board's consumer confidence index for October might provide fresh impetus for short-term traders. Looking at the broader picture, the metal remains confined within a 5-day old trading range and hence, it would be prudent to wait for a decisive break through the near-term trading range before confirming the commodity's near-term trajectory.

Technical levels to watch

From current levels, $1273-75 region remains immediate resistance, which if cleared decisively seems to pave way for additional recovery towards $1290 strong resistance. On the downside, $1262-60 area seems to have emerged as immediate strong support below which the metal is likely to immediately drift towards $1252-50 support zone before eventually dropping to monthly lows support near $1240 region.