Gold retreats farther from multi-week tops, drops to $1340

   •  A strong USD rebound prompts some aggressive long-unwinding trade.
   •  Risk-on mood/fading safe-haven demand adds to the downward pressure.

Having refreshed multi-week tops, near $1357 area, Gold changed course and dropped to an intraday low level of $1340 in the past hour.

Against the backdrop of receding trade war fears, a sharp US Dollar recovery was seen prompting some aggressive selling around dollar-denominated commodities - like gold.

This coupled with reviving investors' appetite for riskier assets, as depicted by strong gains across global equity markets, further weighed on the precious metal's safe-haven appeal and collaborated to the ongoing retracement slide from the highest level since mid-Feb.

Meanwhile, a subdued action around the US Treasury bond yields did little to lend any support to the non-yielding yellow metal, albeit might help limit further losses, at least for the time being.

Traders now look forward to the CB's US Consumer Confidence Index for some impetus. Later during the NY trading session, comments by Atlanta Fed President Raphael Bostic might also influence the price action and help traders grab short-term opportunities. 

Technical levels to watch

A follow-through retracement below $1340 level is likely to accelerate the fall back towards $1332 area with some intermediate support near $1337-36 region. On the upside, $1347 level now seems to act as an immediate resistance and is followed by a strong hurdle near the $1357 region.