Gold in search of a firm direction, consolidates near 1-month tops

   •  Fading safe-haven demand/rising US bond yields prompts some profit-taking.
   •  Persistent USD selling bias helps limit any immediate sharp corrective slide.

Gold struggled for a firm direction and seesawed between tepid gains/minor losses, just below 5-week tops touched at the start of a new trading week.  

A combination of diverging forces failed to provide any fresh impetus and did little to assist the precious metal to build on last week's strong upsurge of around 2.5%. 

Initial signs of stability in global financial markets, amid easing fears of escalating trade war between the world's two-largest economies, dented the precious metal's safe-haven appeal.

This coupled with a goodish pickup in the US Treasury bond yields further held investors from buying the non-yielding yellow metal and collaborated to the softer tone.

Further downside, however, remained limited amid persistent US Dollar selling bias, which tends to underpin demand for dollar-denominated commodities - like gold, and has eventually led to a range-bound/subdued price-action through the mid-European session.

In absence of any major market moving economic releases, traders now look forward to the scheduled speech by various FOMC members in order to grab some short-term trading opportunities.

Technical levels to watch

Bulls would be eyeing for a sustained move beyond $1350-52 area, above which the commodity seems to head towards testing $1358-60 supply zone before eventually darting towards 2016 highs resistance near the $1375 region.

On the flip side, $1344 level might continue to protect the immediate downside, which if broken might prompt some additional profit-taking slide towards $1333-32 support area with some intermediate support near $1337 area.