Gold surrenders early recovery gains, hangs closer to 3-week lows

   •  Reviving USD demand prompts some fresh selling.
   •  Goodish pickup in US bond yields adds to the pressure.
   •  Fedspeak might provide short-term trading opportunities.

Gold surrendered the majority of its early recovery gains and has now retreated to the lower end of its daily trading range. 

A fresh wave of greenback buying interest since the early European session, with the key US Dollar Index inching back closer to the 90.00 handle, prompted some fresh selling around dollar-denominated commodities - like gold.

Further collaborating to the precious metal's retracement slide was fading safe-haven demand amid signs of stability in financial markets, as is evident from a goodish rebound in global equity markets. 

Meanwhile, the latest leg of sharp fall over the past hour or so could also be attributed to a goodish pickup in the US Treasury bond yields, which tends to drive flows away from the non-yielding yellow metal.

In absence of any major market moving economic releases, comments by the New York Fed President William Dudley would be looked upon to grab some short-term trading opportunities.

Technical levels to watch

A follow-through weakness could get extended back towards $1320 support, below which the commodity seems to head towards testing $1313-12 intermediate support en-route the $1300 handle.

On the upside, $1331-32 area might continue to act as an immediate hurdle, which if cleared is likely to accelerate the up-move towards $1339-40 supply zone ahead of the next resistance near the $1346 region.