Gold eases from tops, up little around $1320 level

   •  A modest USD rebound prompts some fresh selling.
   •  Risk-on mood further denting safe-haven demand. 

Gold struggled to build on its early uptick and retreated back to $1320 level during the early European trading session.

The precious metal gained some positive traction on Tuesday and recovered a major part of overnight retracement slide amid a modest US Dollar weakness. The up-move turned out to be short-lived and was being capped by a modest USD rebound, which tends to dampen demand for dollar-denominated commodities - like gold.

Adding to this, a fresh wave of risk-on trade, amid easing fears of a possible global trade war and as depicted by strong gains across equity markets, was also seen weighing on the precious metal's safe-haven appeal and further collaborated toward capping any additional gains. 

However, a mildly softer tone around US Treasury bond yields, which tends to underpin demand for the non-yielding yellow metal, helped limit further downside, at least for the time being. 

Investors might now start repositioning for this week's key event risks, including the latest ECB monetary policy decision and the keenly watched US monthly jobs report (NFP), which will help determine the commodity's near-term trajectory.

Technical levels to watch

Immediate support is pegged near $1317 horizontal level, below which the metal could head towards retesting $1307-06 support area before eventually dropping to test 100-day SMA support near the key $1300 round figure mark.

On the upside, the $1324-25 region might continue to act as an immediate hurdle, which if cleared might trigger a short-covering bounce towards $1338 level with some intermediate resistance near $1331-32 area.