Gold refreshes session tops, inches back closer to $1320 level

   •  Renewed USD selling bias helps defend $1313 important support.
   •  Risk-off mood provides an additional to safe-haven appeal.

Gold extended its steady climb move from weekly lows and has now moved to fresh session tops, around the $1318-19 region.

The precious metal once again managed to find some buying interest near the $1313 support area and has now recovered a part of previous session's sharp slide. Renewed US Dollar selling pressure, triggered by latest US political woes and fears of a potential trade war, was seen as one of the key factors underpinning demand for dollar-denominated commodities - like gold.

This coupled with a fresh wave of global risk aversion trade, as depicted by a sea of red across equity markets, provided an additional boost to traditional safe-haven assets and collaborated to the yellow metal's recovery move. 

Looking at the broader picture, the commodity has been struggling for firm near-term direction and remains within a one-week-old trading range. Hence, traders are likely to wait for a decisive break in either direction before positioning for the commodity's near-term trajectory.

Technical levels to watch

Immediate resistance is pegged near $1321 level, above which the metal seems to retest $1325-26 supply zone before eventually darting to $1330 resistance. On the flip side, $1313 level might continue to act as an immediate support, which if broken is likely to accelerate the fall towards 100-day SMA support near the $1304 region.