Gold edges higher for fourth straight session as USD eases further

Gold edged higher for the fourth consecutive session on Tuesday and now seems headed back to over one-week high touched in the previous session.

Currently trading around $1235 region, renewed geopolitical tension around the Korean peninsula, after N. Korea's yet another ballistic-missile test, coupled with a mildly weaker trading sentiment surrounding equity markets was seen supporting the precious metal's safe-haven appeal. Adding to this, 

Meanwhile, the incoming downbeat US economic data continued weighing on the US Dollar and provided an additional boost to dollar-denominated commodities - like Gold. Against the backdrop of last Friday's dismal retail sales and inflation data, a weaker-than-expected reading for the Empire State Manufacturing Index, released on Monday, now seems to have dented market expectations for an aggressive Fed rate-tightening cycle. Hence, retracing US treasury bond yields is further benefitting the non-yielding yellow metal. 

Later during the NA session, the US economic docket would provide some fresh impetus and help investors to grab some short-term trading opportunities.

Technical levels to watch

A follow through buying interest beyond $1238 level should continue to lift the commodity towards the very important 200-day SMA resistance near $1247 region, above which the momentum could get extended towards $1256 horizontal resistance. On the flip side, $1230-28 region now seems to have emerged as immediate support, which if broken could accelerate the slide back towards $1218 level before the metal eventually aims towards testing its next major support near $1205 level.