Gold jumps to fresh multi-day tops, around $1340 level

   •  Persistent USD selling bias helps regain positive traction.
   •  Fading safe-haven demand/surging US bond yields might cap gains.

Gold built on its steady climb from an intraday day low level of $1331 and refreshed session tops in during the early NA session.

Today's hotter-than-expected release of US PPI figures, with the core reading hitting 7-year highs, did little to revive the US Dollar demand and was seen as one of the key factors underpinning demand for dollar-denominated commodities - like gold. 

Adding to this, geopolitical tensions, amid fears of deteriorating US-Russia relations, further supported the precious metal's safe-haven appeal and remained supportive of the up-move to fresh multi-day highs, around $1340 area. 

The positive factors, to a large extent, were negated by a fresh wave of global risk-on trade, which coupled with resurgent US Treasury bond yields might now contribute towards keeping a lid on the non-yielding yellow metal.

Moving ahead, Wednesday's US consumer inflation figures and the latest FOMC meeting minutes might influence Fed rate hike expectations and eventually provide some fresh directional impetus.

Technical levels to watch

Any subsequent up-move is likely to confront resistance near the $1344-45 region, above which the commodity seems all set to dart towards $1353 supply zone. On the flip side, $1335 level now seems to act as an immediate support, which if broken might drag the metal back towards $1324-23 horizontal support.