Gold regains traction, spikes to session high near $1285

After an initial dip to $1278 level, Gold seems to have regained some fresh traction and turned positive for the second consecutive session.

Currently trading around $1284 level, just shy of session peak touched in the past hour, the prevalent cautious environment, ahead of the crucial first round of French Presidential election, boosted the precious metal's safe-haven appeal.

Meanwhile, a positive trading sentiment surrounding European equity market did little to extend any additional support. Adding to this, a stronger US Dollar, which tends to dent demand for dollar-denominated commodities, further seems to collaborated towards capping the metal's up-move.

Looking at the broader picture, the metal's price-action over the past one week could be categorized as consolidative phase before the next leg of directional move.

Meanwhile, today's US economic docket featuring the release of existing home sales and PMI reports might provide some short-term trading opportunities during early NA session.

Technical levels to watch

On a sustained move above $1285 level, the up-move could get extended towards $1288 intermediate resistance en-route multi-month highs strong hurdle near $1294-95 area and the key $1300 psychological mark.

Meanwhile on the downside, retracement back below $1280 level might continue to find support near $1275 level, which if broken might trigger a near-term corrective slide towards $1262-61 strong support, with some intermediate support near $1272 level.

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