• A subdued USD action/reviving safe-haven demand helps regain some traction. • A modest uptick in the US bond yields kept a lid on any meaningful up-move. • Investors keenly await FOMC meeting minutes for a fresh directional impetus.
Gold reversed an early dip to the $1220 area and is currently placed at the top end of its daily trading range, just above $1225 level.
The US Dollar failed to build on/preserve early modest gains to the 95.00 neighborhood and was seen as one of the key factors underpinning the dollar-denominated commodity.
Meanwhile, the latest leg of a sudden pick up over the past hour or so could further be attributed to reviving safe-haven demand amid a mildly softer tone around European equity markets.
It, however, remains to be seen if the commodity is able to build on the positive momentum or continues with its struggled to sustain above 100-day SMA ahead of the latest FOMC monetary policy meeting minutes.
The September FOMC meeting minutes, due later during the US trading session, will be looked upon for fresh clues over the Fed's rate hike path beyond 2018 and eventually provide some fresh directional impetus for the non-yielding yellow metal.
Ahead of the key event risk, the US economic docket, featuring housing market data - building permits and housing starts, might produce some short-term trading opportunities during the early North-American session.
Technical levels to watch
Any subsequent up-move beyond 100-day SMA might continue to confront some fresh supply near the $1232-33 region, above which the commodity seems all set to aim towards testing $1250 resistance.
On the flip side, immediate strong support is pegged near the $1217 level, which if broken is likely to accelerate the corrective slide back towards $1210 resistance turned support area.
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