Gold recovers further from last week's 2-month lows

   •  Continues to benefit from reviving safe-haven appeal demand.
   •  Sliding US bond yields offset a modest USD rebound and remain supportive.

After an initial dip to $1320 level, gold regained traction and was now seen building on last week's recovery move from 2-month lows. 

Fears of a potential global trade war, following the US President Donald Trump's announcement to impose steep tariffs on steel and aluminium imports, continued weighing investors' sentiment and underpinned the precious metal's safe-haven appeal. 

Adding to this, the latest political development in Italy, where voters delivered a hung parliament in Sunday's general election provided an additional boost and remained supportive of the up-move.

Meanwhile, the ongoing slide in the US Treasury bond yields, further reinforcing the prevalent risk-off mood, seems to have largely offset a modest pickup in the US Dollar demand and was further seen benefitting the non-yielding yellow metal. 

Later during the early NA session, the release of US ISM non-manufacturing PMI would drive the USD price dynamics and influence dollar-denominated commodities - like gold.

Technical levels to watch

A follow-through buying interest has the potential to continue lifting the metal towards $1331-32 supply zone en-route $1336 strong horizontal hurdle. On the flip side, $1322-20 area now seems to have emerged as immediate support, which if broken could drag the commodity back towards the $1315 level.