Gold erases early tepid gains, back around $1325 level
| • USD selling pressure seems to have abated.
• Fading safe-haven demand fails to lend support.
Gold trimmed a major part of its early tepid gains, back closer to yesterday's one-week tops, and has now retreated towards the lower end of its daily trading range.
Against the backdrop of yesterday's disappointing US monthly retail sales data, concerns over a possible global trade-war weighed on the US Dollar and underpinned demand for dollar-denominated commodities - like gold.
Adding to this, trade-war fears triggered some risk-off trade during the Asian session and provided an additional boost to the precious metal's safe-haven appeal, lifting it to an intraday high near $1328 area.
The USD bearish pressure now seems to have eased a bit, which coupled with indications of a positive opening across European bourses capped any additional gains and prompted some selling at higher levels.
Meanwhile, the recent price action over the past one-week or so, within a broader trading range, clearly to suggest indecision over the commodity's near-term trajectory. Hence, it would be prudent to wait for a decisive breakthrough in either direction before positioning for the next leg.
Technical levels to watch
Any subsequent retracement below $1321-20 area is likely to find support near $1316 level and is followed by support near $1313-12 area. On the upside, $1328-30 zone might continue to act as an immediate hurdle, which if cleared could accelerate the up-move towards testing $1340 heavy supply zone.
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