Gold climbs to fresh 1-week tops on reviving safe-haven demand

   •  Renewed geopolitical tensions underpin safe-haven appeal.
   •  Weaker USD/US bond yields provide an additional boost.
   •  Investors now eye US CPI and FOMC minutes for fresh impetus.

Gold continued gaining positive traction for the fourth consecutive session and has now jumped to one-week tops, around $1345 level.

Renewed geopolitical tensions, where in the US is said to be preparing a possible military strike against Syria over a suspected chemical weapons attack, offset easing trade war fears and underpinned the commodity. 

Adding to this, the prevalent cautious sentiment, as depicted by a mildly weaker opening across European bourses provided an additional boost to the precious metal's safe-haven appeal.

Meanwhile, a subdued US Dollar demand, which tends to benefit dollar-denominated commodities, remained supportive of the metal’s steady climb through the early European session.

Investors now look forward to the latest US consumer inflation figures, which along with minutes from the last FOMC meeting would influence Fed rate hike expectations and eventually help determine the next leg of a directional move for the non-yielding yellow metal.

Technical levels to watch

A follow-through buying interest has the potential to continue lifting the commodity further towards $1352-53 supply zone, above which the momentum is likely to get extended towards $1362-66 resistance zone.

On the flip side, $1340 level now becomes an immediate support to defend, which if broken might prompt some additional weakness towards $1332 horizontal support before the commodity eventually drops to retest the $1325-24 region.