Gold moving sideways, supported by the 1hr 50-SMA

After refreshing its daily low at $1202.36, where the 1hr 50-SMA is sitting, the yellow metal started consolidating its losses. At the moment, Gold is retreating 0.05% at $1204.35.

Safe-haven appeal

Despite the daily loss, Gold seems to be forming a potential bottom on the daily graph as the CCI is rising towards the 0 region while the RSI on the same graph is moving further away from the oversold area to the neutral area.The precious metal remains as a good hedge alternative against market risk and geopolitical risk. 

Demand side

According to the latest The World Gold Council demand report, in 2016, India's demand for gold was 675.5325 tons, a 21.2% decrease on a year-over-year basis, the lowest level in the last seven years. Demonetisation in India continues to have a significant impact on the physical demand for Gold, which may limit the gains in the near-future.

Market expectations for a rate hike on Wednesday haven't changed since Friday's NFP data. The CME Group FedWatch Tool shows that the March hike probability is at 88.6% at the moment.

Supports for the precious metal are aligned at $1200 (psychological level), $1195 (Jan. 19 low) and $1185 (Fib. 50% of late Dec. to late Feb. uptrend). On the upside, the first hurdle lines up at $1222 (50-DMA), followed by $1230 (Fib. 23.6%) and $1236 (Mar. 5 high).