Gold surrenders early modest gains, back around $1325 ahead of ECB

   •  A goodish USD rebound prompts some fresh selling at higher levels.
   •  Easing fears of a global trade war add to the downward pressure.
   •  Traders eye ECB for some impetus ahead of Friday’s NFP.

Gold surrendered the majority of its early gains and has now retreated back to the lower end of its daily trading range. 

A goodish US Dollar rebound, despite subdued action around the US Treasury bond yields, was seen as one of the key factors weighing on dollar-denominated commodities - like gold. 

Adding to this, easing fears over the US President Donald Trump's proposed tariffs on steel and aluminium imports further collaborated to the precious metal's retracement slide from session tops. 

The downside, however, remained cushioned amid a mildly cautious sentiment in the European markets, which was seen lending some support to the yellow metal's safe-haven appeal. 

Investors also seemed reluctant to place aggressive bets ahead of today's key event risk - the ECB monetary policy decision, which is expected to infuse some volatility and eventually provide some impetus. 

The commodity is expected to remain choppy, within a broader trading range as traders start repositioning for Friday's keenly watched US monthly jobs report, popularly known as NFP.

Technical levels to watch

A follow-through weakness below $1323-22 area is likely to accelerate the fall towards $1317-16 horizontal support before the metal eventually head towards testing 100-day SMA support near the $1301-$1300 region.

On the upside, $1329-30 area might continue to act as an immediate resistance, above which the commodity could aim back towards retesting $1340 supply zone before targeting its next resistance near $1346 level.