Gold corrects from 1-year highs, slips below $1330 level

Gold corrected a bit on Tuesday and touched a session low level of $1326 in the last hour, albeit has managed to quickly rebound back to $1330 level. 

The precious metal nearly filled previous session's weekly bullish gap to fresh yearly tops, touched in wake of escalating geopolitical tensions after North Korea conducted its most powerful nuclear test over the weekend. 

   •  N. Korean Ambassador: recent self-defense measures are a gift package to the US

Meanwhile, a goodish recovery in the European equity markets, pointing to initial signs of stability returning back to global financial markets, was seen weighing on the precious metal's safe-haven appeal and might have prompted traders to take some profits off the table. 

Adding to this, a modest US Dollar recovery further dented demand for dollar-denominated commodities and collaborated to the yellow metal's modest retracement from the highest level since September 2016.

Next in focus would be speeches from key FOMC member, which could influence Fed rate hike expectations and eventually provide some short-term trading impetus for the non-yielding commodity.

   •  Fed: Expect a rate hike in December - ING

Technical levels to watch

Immediate support is seen near $1325 level, below which the metal is likely to extend the corrective slide towards $1314 horizontal level en-route $1308 strong support.

On the upside, the $1334 region now seems to have emerged as an immediate resistance, which is followed by yearly tops resistance near $1339-40 zone.