Gold jumps to the highest level since early Dec.

After Friday's brief corrective slide, Gold resumed with near-term recovery trend and rose to its highest level since early December. 

Currently trading around $1187-86 region, the precious metal gained fresh traction on Tuesday and traded in positive territory for ninth session in the previous eleven. A broad based US Dollar retracement was seen benefitting dollar-denominated commodities - like Gold. Moreover, retracing US treasury bond yields and cautious investor sentiment is further driving flows towards traditional safe-haven assets, including the yellow metal.

Some of the recent gains in the precious metal could be attributed to expectations of higher inflation in the US, led by aggressive fiscal stimulus by the incoming Trump administration. Meanwhile, stronger US wage growth further added to inflationary concerns, helped the commodity to reverse Friday's corrective slide and lift it to six week highs.

Moving ahead, Fed-speaks would remain at the centre stage this week. Speeches from various Fed officials, including the Fed Chair Janet Yellen, would provide fresh insight over the Fed's monetary policy outlook for 2017 and eventually provide fresh impetus for the non-yielding metal. 

Technical levels to watch

Immediate resistance is pegged near $1190-92 region, coinciding with 50-day SMA, above which the metal seems all set to head towards reclaiming $1200 psychological mark. On the downside, $1180 level now becomes immediate support to defend, which if broken seems to drag the commodity back towards $1170 horizontal support ahead of $1165 support.