Gold attempting a recovery from 3-week lows

Increasing likelihood of a June Fed rate-hike continues to support strong bid tone for the greenback and suppress Gold prices, which now seems to have stuck at the mid-point of $1250-60 zone.

After falling to a three-week low of $1243 on Thursday, the precious metal did attempt a recovery on Friday, which fizzled near $1260 level. The metal reversed from day's peak of $1259 and printed session low of $1252.51. The metal is currently trading with only marginal gains at $1257.

As the US dollar extended its bid tone, especially after Wednesday’ hawkish FOMC minutes, the yellow metal has dropped nearly 2.5% from this week's high level of $1288.

With global stocks showing some signs of stability, sentiment surrounding the greenback would determine the near-term movement for the precious metal.

Technical levels to watch

From current levels, the metal seems to confront immediate resistance near $1256-58 region, above which the momentum could get extended but is likely to be capped near $1263-65 resistance area.

Conversely a drop back below $1250 and a subsequent weakness below $1245 intermediate support, the yellow metal could extend its depreciating move towards $1232-32 horizontal support.