Gold jumps to session tops, near $1335 level

Gold reversed early dip to $1330 area and has now jumped to fresh session tops, around the $1334 region.

The US Dollar pared some of its strong recovery gains posted at the start of this week and was seen lending some support to dollar-denominated commodities and helped the precious metal to build on previous session's rebound from the lowest level in more than a week.

This coupled with the prevalent cautious environment, especially after the US President Donald Trump urged harsher sanctions against North Korea, further supported demand for traditional safe-haven assets and provide an additional boost to the precious metal. 

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Focus now shifts to the upcoming US macro data, including the latest inflation figures on Thursday and monthly retail sales data on Friday. 

The incoming data would provide clues over the Fed's balance sheet reduction plans and possibilities of any additional rate hike move by the end of this year, which would eventually help determine the next leg of directional move for the non-yielding yellow metal.

Technical levels to watch

Immediate resistance is pegged near $1339 area, above which the metal is likely to dart towards $1348-50 resistance with some intermediate hurdle near $1344-45 zone.

On the flip side, weakness back below $1330 level might now find support near $1326 area, below which the corrective slide could get extended towards the $1320 region.