Gold hits fresh nine-month low at $1180

Gold held on to Wednesday's steep losses and dropped to hit a fresh multi-month lows during early European session on Thursday. 

Currently trading around $1182 region, the yellow metal's early attempted tepid recovery bounce to $1190 got sold into amid broad based US Dollar strength as market now seemed convinced that the Fed on December Fed rate-hike expectations and is weighing on dollar-denominated commodities. 

On Wednesday, the metal came under intense selling pressure after strong US durable goods orders provided an additional boost to the prevalent bullish sentiment surrounding the greenback. Adding to this, hawkish FOMC meeting minutes fueled faster Fed rate-tightening cycle and further dented demand for non-yielding precious metal. Subsequently, the metal tumbled below $1200 psychological mark and dropped to its lowest level since Feb. 

Going forward, the commodity remains dependent on USD dynamics, while broader market risk-sentiment might also contribute to the metal's price-action on Thursday amid thin liquidity conditions on the back of Thanksgiving holiday in the US. 

Technical levels to watch

A follow through selling pressure below $1180 immediate support, the downslide is likely to get extended immediately towards $1169-68 support area before the metal eventually drops to test $1156-55 support area. Meanwhile on the upside, any recovery beyond session peak level of $1191 now seems to confront strong resistance at $1200 handle above which a bout of short-covering could boost the commodity further towards $1210 strong resistance.