Gold refreshes session tops and retreats, flat-lined below $1310

Having reversed early Asian session dip below $1300 mark, gold regained some fresh traction and refreshed session tops post US data.

Today's mixed US economic data did little to provide any fresh bullish impetus to the US Dollar's ongoing strong recovery and benefitted dollar-denominated commodities - like gold. 

After a flat reading in June, personal income saw a modest 0.4% rebound in July, which was a tad better-than-expected, albeit was negated by slower than expected growth in personal spending, at 0.3% m-o-m vs. 0.4% expected. 

Meanwhile, data on prices did not show any meaningful increase in inflationary pressures, with the PCE price index remaining stubbornly below the Fed's 2% target. 

   •  Fed: Inflation headache intensifies as core PCE hits low - ING

Immediately after the releases, the yellow metal spiked to $1312 level but quickly retreated to $1309 area. The prevalent risk-on environment, which tends to weigh on traditional safe-haven assets, was seen keeping a lid on the precious metal's up-move. 

Investors' focus would remain glued to the keenly watched US monthly jobs report (NFP), due for release on Friday, which should influence Fed rate hike expectations and determine the next leg of directional move for the non-yielding metal.

Technical levels to watch

Immediate resistance is pegged near $1314-15 area, above which the metal is likely to retest yearly tops near $1325 level before eventually darting towards Nov. 2016 swing highs resistance near $1335. 

On the flip side, $1305 level now seems to protect the immediate downside, which if broken could drag the commodity back towards $1300 handle. A follow through weakness could get extended towards an important resistance break, now turned support near $1292-91 zone.