Gold hits fresh session lows, below $1310 level on stronger USD

   •  Resurgent USD demand prompts some fresh selling over the past hour or so.
   •  Weaker sentiment around equity markets does little to lend any support.
   •  Trump’s decision on the Iran nuclear deal might influence near-term direction.

After an initial uptick to $1317 area, gold met with some fresh supply and tumbled to fresh session lows in the last minute.

The latest leg of sharp fall over the past hour or so could be solely attributed to resurgent USD demand, following the Fed Chair Jerome Powell's comments. In fact, the key US Dollar Index spiked to fresh YTD tops and was seen as one of the factors that prompted selling around dollar-denominated commodities - like gold.

Meanwhile, the prevailing negative trading sentiment around European equity markets did little to revive demand for traditional safe-haven assets and stall the precious metal's safe-haven fall back below the $1310 level. 

However, a subdued action around the US Treasury bond yields and uncertainty over the US President Donald Trump's decision over the Iran nuclear deal extended some support and helped limit deeper losses, at least for the time being. 

Hence, today's key focus would remain on Trump's announcement, due later during the NY trading session, which might trigger a bout of volatility across global financial markets and provide some meaningful impetus.

Technical levels to watch

Any subsequent weakness is likely to find support at the very important 200-day SMA, currently near the $1305 region, below which the commodity is likely to accelerate the fall towards the $1300 round figure mark.

On the flip side, momentum back above $1315 level might continue to confront some supply near the $1319-20 area but seems more likely to get extended towards 100-day SMA hurdle near the $1324 region.