Gold hovering around 10-month lows

Having recorded five consecutive week of losses, Gold extended its recent downward trajectory and dropped to the lowest level in over 10-month on Monday. The metal, however, has managed to pull back from session lows and is currently trading with mild weakness around $1157 region.

Firming expectations of an eventual Fed rate-hike action this week has been curbing flows towards the non-yielding precious metal. Moreover, anticipated higher interest rates in the US has been the driving the US Dollar higher and is also weighing on dollar-denominated commodities - like gold. 

Adding to this, weekend oil output cut deal between OPEC and non-OPEC deal triggered a fresh wave of risk-on mood on Monday, which is eventually denting demand for traditional safe-haven assets and did little to halt the yellow metal's ongoing depreciating move. 

Investors now anxiously await for the outcome of Fed's two monetary policy meeting, scheduled to be announced on Wednesday. The accompanying rate-statement would provide policymakers projections for interest rates, and growth numbers, which would help investors evaluate the pace of monetary tightening next year and determine the next leg of directional move for the precious metal.

Technical levels to watch

Any recovery attempts now seems to confront immediate resistance near $1160 level above which the momentum could get extended towards $1169-70 horizontal resistance en-route $1173-75 resistance area. On the downside, weakness below $1154 session low support seems to drag the commodity towards $1150 support below which the metal seems to head towards testing $1140 support area.