Gold jumps to multi-day tops, around $1310 level amid notable USD supply

   “¢   The prevalent USD selling bias continues to benefit the commodity.
   “¢   Bulls seemed rather unaffected by a fresh wave of global risk-on trade.
   “¢   A modest uptick in the US bond yields might cap gains ahead of FOMC.
 
Gold continued gaining positive traction through the mid-European session and is currently placed at three-day tops, around the $1310 region.  

The prevalent US Dollar selling bias, which aggravated further in the past hour or so, was seen as one of the key factors benefitting the dollar-denominated commodity and fueling the ongoing positive momentum for the third consecutive session on Tuesday.

Bulls seemed rather unaffected by the prevalent risk-on mood, which tends to dent the precious metal’s relative safe-haven demand, though a modest uptick in the US Treasury bond yields might keep a lid on any strong follow-through up-move.  

Hence, it would be interesting to see if bulls are able to maintain their dominant position or the commodity starts losing steam as the focus now shifts to this week’s key event risk – the latest FOMC policy update, which might provide some fresh directional impetus for the non-yielding yellow metal.

Technical levels to watch

Immediate resistance is pegged near the $1312-14 region, above which the metal seems all set to aim towards testing the $1321-22 supply zone. On the flip side, the $1305 region, followed by the key $1300 psychological mark now seems to protect the immediate downside, which if broken might accelerate the slide further towards $1295-93 support zone.