Gold attempting a fresh move to break through 200-DMA hurdle

Gold regained some traction and edged higher on Tuesday, hitting fresh session top near $1257 level during early European session. 

On Monday, comments by the Fed Chair Janet Yellen reinforced market expectations of additional rate-hike moves and helped offset geopolitical concerns, albeit did little to drag the commodity further below $1250 level. 

Heightened geopolitical tensions in the Korean peninsula and Middle East following the US strikes on Syria, along with uncertainty surrounding the upcoming French presidential election, remained supportive for the precious metal's safe-haven appeal. 

Meanwhile, the ongoing slide in the US treasury bond yields, primarily led by the prevalent cautious sentiment across global financial markets, has failed to boost the US Dollar demand and is further benefitting dollar-denominated commodities - like gold. 

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Looking at the broader picture, the very important 200-day SMA has been acting as strong hurdle for the metal. Hence, it remains to be seen if the commodity is able to build on to the momentum or once again runs through some fresh offers at this important juncture. 

Technical levels to watch

Bulls would be eyeing for a sustained move through $1260-61 resistance, above which the metal is likely to aim back towards $1270 resistance (April 7 high) ahead of $1275 resistance.

On the downside, retracement back below $1252 level could drag the commodity back towards $1247 (yesterday’s low), which if broken is likely to trigger a corrective slide further towards $1242 intermediate support ahead of $1238-37 important horizontal support.