Gold sits at session tops, around $1330 level ahead of US data

   •  Renewed USD weakness helps regain some traction.
   •  Surging US bond yields capping additional gains.
   •  US economic data eyed for trading opportunities.

After an initial dip to fresh weekly lows, gold staged a modest recovery to $1330 level and recovered part of previous session's steep losses. 

The precious metal stalled its corrective slide to the lowest level in nearly a week and was now supported by some renewed greenback weakness. In fact, the US Dollar Index struggled to build on overnight rebound from 3-year lows and eventually benefitted dollar-denominated commodities - like gold. 

However, a follow-through pickup in the US Treasury bond yields, backed by growing market conviction that Fed would deliver at least three rate hikes in 2018, was seen keeping a lid on any additional gains for the non-yielding yellow metal.

The Federal Reserve's Beige Book, released on Wednesday, provided anecdotal evidence that the US economy is strong enough to withstand multiple rate hikes in 2018 and triggered a fresh leg of an upsurge in the US bond yields. 

Investors now look forward to upcoming US economic releases - housing market data, Philly Fed Manufacturing Index and initial weekly jobless claims, in order to grab some short-term trading opportunities. 

Technical levels to watch

Momentum beyond $1332 level now seems to accelerate the up-move back towards $1340 supply zone en-route $1345 barrier. On the flip side, $1324 level might continue to protect the immediate downside, which if broken might turn the metal vulnerable to correct further towards $1312 horizontal support.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.