Gold consolidates near 7-week lows, around $1270 region

Gold was seen consolidating its recent downfall to 7-week lows and oscillated within a narrow trading range below 100-day SMA.

A combination of diverging factors has failed to provide any fresh directional impetus for the precious metal. A modest pull-back in the US Dollar was seen lending some support to dollar-denominated commodities - like gold. 

The positive effect, however, seems to have been largely negated by the prevalent risk-on environment, which tends to dent the precious metal's safe-haven appeal and has eventually led to a subdued, range-bound price action.

Moreover, growing prospects for an additional Fed rate hike move in 2017, further reinforced by the ongoing upsurge in the US Treasury bond yields, was also seen keeping a lid on any sharp up-move for the non-yielding yellow metal. 

Later during the NA session, comments by the Fed Governor Jerome Powell would now be looked upon to grab some short-term trading opportunities.

Technical levels to watch

Immediate resistance remains near the $1272-73 region (100-day SMA), which if cleared might trigger a short-covering bounce towards $1279 level en-route $1283-84 hurdle.

On the flip side, bears would be eyeing for a clear break through $1268-67 area, below which the commodity is likely to accelerate the fall towards $1260 horizontal support ahead of $1256 level.