Gold attempts a tepid recovery from 20-DMA support

A broader retracement in the greenback is seen assisting Gold to register a tepid rebound from 20-day SMA to currently trade around $1341 level. 

Meanwhile, a cautious trade around equity markets seems to boost the precious metal's safe-haven demand, while also being supported by a weaker US Dollar.  The yellow metal remains at the mercy of investor sentiment surrounding the US Dollar, which influences demand for dollar-denominated commodities - like gold. 

On Friday, a sudden turnaround in the US Dollar, despite of weaker-than-expected US economic data that dashed hopes of an eventual Fed rate-hike in 2016, led to a sharp reversal in gold prices. The commodity, however, found support at 20-day SMA and is now attempting to recover some of its lost ground. 

Today's release of Empire State Manufacturing Index from the US might provide some immediate movement but the near-term direction would be determined by this week's FOMC meeting minutes that would be looked upon for central bank’s outlook of the economy, which would eventually drive the greenback in the near-term. 

Technical levels to watch

From current levels, $1345-47 region seems to act as immediate support, above which the momentum is likely to boost the commodity back towards $1355-57 strong resistance. A convincing strength above $1355 important resistance should pave way for a further up-move towards post-Brexit swing high resistance near $1375 region.

On the flip side, 20-day SMA near $1335 remains immediate support to defend, which if broken decisively seems to drag the metal through $1330 support towards its next major support near $1315 level ahead of $1305-1300 strong support.