Gold up-little around $1250, struggling to register any meaningful recovery

Gold extended the recovery move from six-week lows touched at the beginning of this week and traded with a mild positive bias for the second consecutive session.

Deteriorating investors' appetite for riskier assets, as depicted by weaker sentiment around equity markets was seen lending support to the precious metal's safe-haven appeal. Adding to this, the ongoing US Dollar slump further boosted demand for dollar-denominated commodities and collaborated to a mildly positive tone surrounding the yellow metal. 

The up-move, however, seemed lacking strong conviction amid prospects of higher interest rates in the US. The Fed Chair Janet Yellen reiterated the need to raise interest rates gradually and hence, a follow through up-move in the US Treasury bond yields seems to have kept a lid on any meaningful recovery for the non-yielding commodity.

Today's key focus would be on comments coming out of the Central Bankers panel discussion at the European Central Bank Forum, which could trigger some volatility across financial markets and derive demand for traditional safe-haven assets - like gold. 

   •  Central bank speakers remain in focus – Lloyds Bank

Technical levels to watch

Bulls would be eyeing for a strong follow through momentum beyond $1253 level, above which the metal seems more likely to surpass $1257 intermediate resistance and head towards testing $1260 level.

On the flip side, sustained weakness back below $1245 immediate support would turn the commodity vulnerable to head back towards retesting Monday's swing lows support near $1235 region, also coinciding with the very important 200-day SMA.