Gold turns lower on stronger USD and diminishing safe-haven demand

Gold traded with negative bias during early European session on Monday amid some renewed greenback buying interest.

Currently trading around $1231 region, testing session lows, growing market consensus that the Fed would eventually move towards raising interest rates at its upcoming meeting on March 14-15 continues to lend support to the US Dollar and is driving flows away from dollar-denominated commodities - like gold. 

Meanwhile, easing geopolitical tensions over North Korea further dented demand for traditional safe-haven assets and collaborated to negative sentiment surrounding the precious metal. The metal got an initial boost after N. Korea fired four ballistic missiles into the sea off Japan’s northwest coast and hence, investors would continue to closely monitor any further developments around the issue.

With an empty US economic docket, the metal remains at the mercy of broader market risk-sentiment and the US Dollar price-dynamics ahead of this week's key event risk, the release of keenly watched US NFP data on Friday.

Technical levels to watch

Immediate support is seen near $1225 region, below which the commodity remains vulnerable to extend the ongoing reversal move, from the very important 200-day SMA hurdle, back towards retesting 100-day SMA support near $1212 region. 

Meanwhile on the upside, $1236-37 area now seems to have emerged as immediate resistance, which if cleared might assist the metal to move back towards $1250 resistance area ahead of $1260-62 strong barrier (200-day SMA).