Gold struggling to register any meaningful recovery from multi-month lows

Despite of a broad based greenback retracement, Gold maintained its offered tone for the third consecutive session and remained closer to over 10-month lows touched during early Asian session on Monday.

Currently hovering around $1156 region, the precious metal failed to extract any support from weaker US Dollar, which tends to boost demand for dollar-denominated commodities - like gold. Moreover, cautious sentiment prevalent around the European equity markets has also failed to benefit the yellow metal's safe-haven investment appeal. 

The metal's inability to register any meaningful recovery, despite of some support from couple of intrinsic, clearly reveals investors' reluctance to carry any bullish bets in anticipation of an interest rate hike at this week's FOMC meeting, ending on Wednesday. 

With the near-term trajectory still dependent on the US Dollar, hints towards a faster pace of reversal of the Fed's easy monetary policy would help the greenback to continue with its recent up-surge and eventually trigger a fresh leg of sell-off in gold. 

Technical levels to watch

Recovery momentum above $1160 immediate resistance is likely to trigger a short-covering bounce towards $1169-70 resistance area ahead of $1175 strong hurdle. On the flip side, multi-month lows near $1151 level is likely to act as immediate support, which if broken is likely to continue dragging the metal further towards its next support near $1140 region.