Gold sits near session tops around $1265 level

Gold continued gaining traction through early NA session and has now reversed Tuesday's corrective slide from four week tops.

Currently placed at session highs near $1267 region, a fresh wave of greenback selling pressure, backed by retracing US treasury bond yields, has been a key driver of the precious metal's up-move in the past hour or so. A weaker US Dollar benefits dollar-denominated commodities - like gold.

Market seems to have largely ignored buoyant sentiment around equity markets, which tends to weigh on traditional safe-haven assets, with broad based greenback weakness acting as an exclusive driver of the metal's up-move on Wednesday.

Moreover, hawkish comments from Dallas Fed President Robert Kaplan, that three Fed rate-hike in 2017 is seen as base case scenario did little to stall the commodity's up-move, albeit seems to have contributed towards capping further up-move, at least for the time being.

Investors now looked forward to the key US monthly employment details - NFP on Friday, in order to determine the metal's near-term direction. However, political uncertainty in the UK might continue to limit any immediate downslide as dips would be bought into as a protection against any unexpected outcome.

Technical levels to watch

Immediate resistance is pegged near $1270 level, above which a fresh bout of short-covering could lift the commodity beyond $1274-75 intermediate resistance towards its next major hurdle near $1279-80 region. 

On the downside, $1260 level now becomes immediate support to defend, which if broken could accelerate the slide back towards $1255 support before the metal eventually breaks below $1250 level towards the very important 200-day SMA support near $1244-42 region.