Gold holding steady near 4-week highs, remains capped below 200-DMA

Having once again failed to decisively break through the very important 200-day SMA hurdle, gold was seen consolidating recent gains and held steady near four week highs.

A slight improvement in investors' risk-appetite, as depicted by recovery in equity markets, weighed on the precious metal's safe-haven investment appeal. This coupled with a modest US Dollar recovery further curbed demand for dollar-denominated commodities - like gold, and held it below one month high touched in the previous session.

On Monday, the yellow metal rallied in wake of a fresh wave of global risk-aversion and broad based greenback sell-off on growing skepticism over the US President Donald Trump's ability to push through pro-growth economic policies, especially after GOP leaders’ failure to repeal and replace Obamacare.

Despite of Monday's strong up-move, the metal failed to clear 200-day SMA strong hurdle and now seems to have formed a bearish double top chart-pattern on daily charts. It, however, remains to be seen if the pull-back indicated bullish exertion or a consolidation phase before the next leg of appreciating move. 

Later during the NA session, the release of CB Consumer Confidence Index from the US might provide some impetus for short-term traders ahead of a scheduled speech by the Dallas Fed President Robert Kaplan.

Technical levels to watch

On the upside, $1260 region (200-day SMA) remains immediate strong hurdle, which if cleared decisively is likely to lift the commodity towards $1275 horizontal resistance with some intermediate resistance near $1270 level. Meanwhile on the downside, retracement below $1250 area is likely to find support near $1245 horizontal level, below which the corrective slide could get extended towards $1236-35 support zone.