Gold erases tepid recovery gains, Fed rate-hike expectations continue to weigh

Gold reversed early attempted tepid recovery gains to session peak level near $1195 region and has now turned absolutely flat for the day. 

Currently trading around $1188 region, nearly unchanged from yesterday's closing level, the precious metal extended its near-term consolidation phase closer to multi-month lows touched last week. Even the prevalent uncertainty around OPEC-deal has failed to boost the metal's safe-haven appeal. Growing expectations of higher interest-rates in the US, even beyond December meeting, has been the key factor weighing on the non-yielding metal and restricting any swift near-term recovery.

Today's US economic docket that includes - ADP report on private sector employment, Fed's preferred inflation gauge - Core PCE Price Index, Chicago PMI and pending home sales data, might provide some impetus for short-term traders. However, Friday's NFP data would be a key determinant for the US Dollar's near-term trajectory and would eventually drive dollar-denominated commodities - like gold. 

Technical levels to watch

Immediate downside support is pegged near $1181-80 region below which the commodity could head back towards retesting multi-month lows support near $1171 region. A convincing break below $1171-70 support now seems to open room further near-term downslide towards $1152-50 support area. 

On the upside, $1195 region now seems to have emerged as immediate strong hurdle, which if cleared should trigger a short-covering bounce beyond $1200 handle towards its next major resistance near $$1207-08 region.