Gold surrenders early gains, eases back to $1340 level

Gold finally broke down of its mid/late-Asian session consolidation phase and has now erased the majority of its daily gains. 

The precious metal initially was seen building on overnight gains and was being supported by global flight to safety. A rout in the US stocks carried over into the Asian markets and remained supportive of the commodity's safe-haven appeal. 

However, a modest recovery in European markets curbed demand and did little to provide any additional boost. Meanwhile, a fresh wave of US Dollar weakness was seen lending some support and was seen limiting any further downside for dollar-denominated commodities - like gold. 

From a technical perspective, the commodity is retreating from a short-term descending trend-line resistance and hence, it would be prudent to wait for a clear break through the mentioned hurdle before committing to any additional near-term up-move.

In absence of any major market moving economic releases, broader market risk sentiment and the USD price dynamics would continue to play important role in determining the commodity's momentum on Tuesday.

Technical levels to watch

Immediate support is pegged near $1345 level, which if broken might turn the metal vulnerable to head back towards $1328-26 strong horizontal zone with some intermediate support near the $1332 region.

On the upside, $1345 level remains immediate resistance to conquer, above which the commodity seems all set to surpass $1350 hurdle and head towards testing $1358 supply zone.