• Renewed trade war fears prompt USD selling and helps regain traction. • Risk-off mood provides an additional boost to the safe-haven appeal. • Traders now eye US ISM PMI for some short-term opportunities.
Gold continued gaining some positive traction through the mid-European session and refreshed session tops in the past hour.
A fresh wave of US Dollar selling pressure, triggered by some renewed US-China trade war fears, was seen as one of the factors underpinning demand for dollar-denominated commodities.
Adding to this, indications of a weaker opening across the US equity markets further underpinned the precious metal's safe-haven appeal and collaborated to the strong bid tone at the start of a new trading week.
Meanwhile, traders seemed to have largely ignored a goodish pickup in the US Treasury bond yields, with the USD price dynamics/risk-off mood acting as an exclusive driver of the non-yielding yellow metal's positive move on Monday.
Traders now look forward to the release of US ISM manufacturing PMI in order to grab some short-term trading opportunities. This along with this week's important US macro releases, including the keenly watched NFP, would play a key role in determining the commodity's next leg of directional move.
Technical levels to watch
A follow-through buying interest has the potential to continue lifting the commodity further towards $1340 intermediate resistance en-route $1346 supply zone. On the flip side, $1330 level now seems to protect the immediate downside, which if broken could accelerate the fall back towards $1326 horizontal level ahead of $1320 support.
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