Gold up little, inches back closer to $1295 barrier
• Reviving safe-haven demand provides a minor boost.
• Rising US bond yields/receding USD selling might limit strong gains.
• Sustained momentum beyond $1295 needed for additional gains.
Gold gained some positive traction on Monday and is currently placed at fresh session tops, around the $1292 region.
After last week's modest losses, reviving safe-haven demand, amid prevalent cautious trading sentiment around equity markets, provided a minor boost at the start of a new trading week.
However, easing German geopolitical uncertainty, coupled with an uptick in the US Treasury bond yields now seemed to cap any additional gains for the non-yielding yellow metal.
Meanwhile, investors now looked past last week's dovish FOMC meeting minutes and easing selling pressure surrounding the US Dollar might also collaborate towards keeping a lid on dollar-denominated commodities - like gold.
Hence, it would be prudent to wait for a strong follow-through buying interest, beyond $1295-96 supply zone, before committing to any further near-term up-move.
Technical levels to watch
A clear breakthrough the mentioned barrier might now lift the commodity beyond the $1300 handle towards its next hurdle near the $1306 region.
On the flip side, $1286 area seems to have emerged as immediate support, which if broken could accelerate the slide back towards $1280 intermediate support en-route $1276-75 zone.