Gold surges to near 6-week tops, beyond $1350 level

   •  USD remains heavily offered and helps regain positive traction.
   •  Retracing US bond yields offset the prevalent risk-on mood. 

After an initial downtick to $1343 area, Gold regained some fresh traction and surged to near 6-week tops during the early NA session.

An intense selling pressure surrounding the US Dollar, despite easing US-China trade tensions, was seen as one of the key factors underpinning demand for dollar-denominated commodities - like gold.

The latest leg of sharp uptick over the past hour or so could also be attributed to a modest retracement in the US Treasury bond yields, which tends to benefit the non-yielding yellow metal.

The supportive factors largely offset the prevalent risk-on mood/fading safe-haven demand, with the USD price dynamics acting as an exclusive driver of the commodity's upsurge to the highest level since mid-Feb.

Moving ahead, comments by influential FOMC members, due to speak at the HOPE Global Forum annual meeting in Atlanta, might influence Fed rate hike expectations and eventually provide some fresh impetus.

Technical levels to watch

Immediate resistance is pegged near the $1358-60 area, above which the commodity seems all set to aim towards challenging 2016 swing highs resistance near the $$1375 region. On the flip side, $1348-46 zone now seems to protect the immediate downside, which if broken might prompt some additional profit-taking towards $1337 horizontal level en-route $1328 support.