Gold struggles to gain traction, confined in a range below $1350 level

   •  Subdued USD price-action fails to provide fresh impetus.
   •  Rising equities further denting safe-haven demand. 

Having faded an early Asian session spike to an intraday high level of $1351.40, gold entered a consolidation phase and is currently placed at the lower end of its daily trading range. 

The US Dollar wavered between tepid gains/minor losses and has failed to provide any meaningful directional impetus to dollar-denominated commodities - like gold. Adding to this, rising equity markets was further seen dampening the precious metal's safe-haven appeal and collaborated to a mildly weaker tone.

A combination of the above-mentioned factors now seems to have offset concerns about rising inflation and did little to boost demand for the yellow metal as a hedge against inflation. 

Meanwhile, holiday-thinned liquidity conditions helped limit any deeper losses, at least for the time being. Hence, it would be prudent to wait for a strong follow-through selling before positioning for any additional near-term weakness. 

Technical levels to watch

On a sustained break below $1345-44 immediate support, the metal is likely to accelerate the fall towards $1340 level before eventually dropping towards its next support near the $1332-31 region.

On the upside, $1350-51 area might continue to act as an immediate hurdle and is followed by resistance near $1358 level, above which the commodity seems all set to aim towards testing the $1366 region.