Gold attempting a fresh move towards clearing 200-DMA important hurdle

Having posted a session low near $1251 level, gold regained traction and moved back within striking distance of the very important 200-day SMA hurdle. 

Currently trading around $1258, testing session tops, the precious metal's latest leg of up-move could be attributed to a modest US Dollar selling pressure. Meanwhile, a subdued opening hour of trade in the US equity markets further supported the yellow metal's safe-haven appeal and collaborated to the up-move during early NA session. 

The momentum, however, remained capped below the key 200-day SMA barrier near $1260 region in wake of stellar US Consumer Confidence Index. According to the data released on Tuesday, the US consumer confidence index soared to the highest level in more than 16 years in March and seems to have provided some immediate respite for the US Dollar bulls, which eventually seems to be driving flows away from dollar-denominated commodities - like gold.

Meanwhile, possibilities of repositioning ahead of speeches from various FOMC members, including the Fed Chair Janet Yellen, could also be one for the factor contributing to some volatile price-action in the past hour or so. Against the backdrop of a big setback to the US President Donald Trump's economic reforms, hints towards a change in the central bank's monetary policy stance would now act as the next big trigger for the metal's near-term trajectory.

Technical levels to watch

Bulls would be eyeing for a decisive strength above $1260 level (200-day SMA), above which the metal is likely to accelerate the up-move towards $1270 intermediate resistance before eventually scaling higher towards its next major hurdle near $1275 region.

On the downside, $1250 region now becomes immediate support to defend, which if broken now seems to drag the commodity below $1245 horizontal support, towards testing $1236-35 support zone.