Gold stages a minor recovery from Monday’s 5-month low

Gold extended its rebound from Monday's five-month low and erased all of its losses recorded in the previous session.

Currently trading around $1227-28 region, broad based greenback retracement is boosting demand for dollar-denominated commodities and has been supportive of the yellow metal's rebound on Tuesday. The recovery, however, lacked momentum as increasing prospects of an eventual Fed rate-hike action in December continues to undermine non-yielding commodity and the metal retreated from session peak level of $1231. 

Later during NA session, US economic releases that include - monthly retail sales and Empire State Manufacturing Index would be looked upon for short-term trading opportunities. Meanwhile, the broader trend would remain determinant on the overall sentiment surrounding the greenback, as measured by the overall US Dollar Index. 

Technical levels to watch

On a sustained strength above $1230-32 immediate resistance, the metal is likely to extend the recovery momentum towards $1250 strong resistance area with $1240 level acting as intermediate hurdle. On the flip side, $1220 level now seems to act as immediate support below which the commodity seems vulnerable to aim back towards $1210 (Monday's low) before eventually dropping to $1200 psychological mark.