Gold jumps to 1-month tops amid notable USD supply, eyeing $1,300 level

Gold continued scaling higher through the early European session and jumped to fresh monthly tops, with bulls now eyeing the $1300 psychological mark.

The greenback selling pressure remained unabated on Thursday, with the key US Dollar Index falling to 3-month lows and underpinning demand for dollar-denominated commodities - like gold. Adding to this, a mildly softer opening across European equity markets provided an additional boost to the precious metal's safe-haven appeal. 

Meanwhile, possibilities of some follow-through technical buying, on a decisive breakthrough 100-day SMA barrier, further collaborated to the yellow meal's strong up-move to its highest level since November 29.

Currently placed near the $1293 region, the yellow metal has gained in excess of 4.5% from near 5-month lows, touched earlier this month, and now look forward to today's second-tier US economic data for some fresh impetus.

Technical levels to watch

Momentum beyond $1295 horizontal resistance could easily get extended towards the $1300 handle, above which the commodity could head towards testing Oct. monthly highs resistance near the $1306 region.

On the flip side, any meaningful retracement now seems to find immediate support near the $1287 region (100-day SMA), which if broken might trigger a corrective slide towards $1278 horizontal level.