Gold eases from 1-week tops, still comfortable above $1500 mark

Gold failed to capitalize on its early uptick to weekly tops and is currently placed at the lower end of its daily trading range, still holding comfortably above the key $1500 psychological mark.
 
Following the previous session's directionless trading action, the precious metal managed to regain some positive traction during the Asian session on Thursday in the wake of reviving safe-haven demand amid nervousness ahead of the resumption of the crucial high-level US-China trade talks.

Renewed trade optimism capping gains

The uptick, however, lacked any strong follow-through and remained capped below last week's swing highs on the back of incoming positive trade-related headlines, which remained supportive of the risk-on flows and dented demand for traditional safe-haven assets – including Gold.
 
The global risk sentiment got a strong boost on Wednesday after Bloomberg reported that China was still open to a partial trade deal with the US. This was followed by reports on Thursday that the US is considering entering into a currency agreement with China as a part of a partial trade deal.
 
Meanwhile, a mildly weaker tone surrounding the US Dollar helped limit the downside. Despite Wednesday's not so dovish FOMC minutes and a goodish pickup in the US Treasury bond yields, the Greenback remained on the defensive and underpinned demand for the dollar-denominated commodity - Gold.
 
It will now be interesting to see if the commodity is able to find any meaningful traction as market participants now look forward to Thursday's important release of the latest US consumer inflation figures. This along with trade-related developments might play a key role in determining the next leg of a directional move.

Technical levels to watch