Gold retreats from 2-month peak amid broad based USD recovery

Gold snapped three days of winning streak to nine-week tops and witnessed a profit taking slide on Tuesday amid broad based US Dollar bounce back.

Indication of negative opening in the European equity markets extended little support to traditional safe-haven assets and the ongoing US Dollar recovery remains the exclusive driver of the precious metal's retracement from the highest level since Nov. 22. A strong greenback tends to drive flow away from dollar-denominated commodities - like gold. The yellow metal was last seen trading around $1215 region.

Investors on Tuesday will remain focused on the UK Supreme Court's ruling on Brexit, which would derive investors' sentiment towards risk-associated assets and provide fresh impetus for the yellow metal's safe-haven investment appeal.

Meanwhile, uncertainties around Trump's Presidency might continue to weigh on investor sentiment and limit any immediate sharp downslide in gold prices.

Technical levels to watch

A follow through retracement is likely to find support near $1210-08 region below which the corrective slide could get extended towards $12000 round figure mar, en-route $1196-95 support area.

Conversely, sustained move above $1218-20 hurdle is likely to accelerate the up-move towards $1225 intermediate resistance ahead of 100-day SMA strong resistance near $1235 region.