Gold building on early recovery move from multi-week lows

Gold extended its recovery move from 100-day SMA support and is currently probing session peaks near $1235 region.

With the initial reaction to the pro-EU candidate Emmanuel Macron's win in the French presidential election, a fresh wave of global risk-off trade, as depicted by negative trading sentiment surrounding the European equity markets, supported the precious metal's safe-haven appeal.

A pull-back in the US treasury bond yields further reaffirmed a slight deterioration in investors' risk-appetite and helped the yellow metal to stage a goodish recovery from 100-day SMA support. 

Meanwhile, the commodity gained traction despite of a stronger US Dollar, which tends to dent demand for dollar-denominated commodities - like gold, with global risk sentiment acting as an exclusive driver on the first trading day of the week. 

Later during the day, comments by St. Louis Fed President James Bullard might influence investors’ expectations over June Fed rate-hike action and might eventually provide some fresh impetus for the non-yielding metal.

Technical levels to watch

Bulls would be eyeing for a follow through buying interest beyond $1236 region (session tops), above which the ongoing recovery move could get extended towards the very important 200-day SMA hurdle near $1251 region, with some intermediate hurdle near $1245 level.

On the downside, retracement back below $1228 level might continue to find some buying interest at 100-day SMA near $1222-21 region, which if broken decisively seems to pave way for continuation of the metal's near-term downward trajectory towards its next support near $1205 level, with intermediate support pegged near $1210-09 area.