Gold holds weaker below $1300 mark, closer to one-month lows

Gold extended precious session's sharp retracement move and held weaker below $1300 mark, closer to one-month lows.

On Tuesday, the precious metal slumped over 1% after the Fed Chair Janet Yellen reinforced market expectations for another rate hike move in 2017. Yellen's hawkish comment weighed heavily on the non-yielding yellow metal and dragged it back below the $1300 handle. 

   •  Yellen tried to strike a balanced tone - ANZ

Meanwhile, renewed optimism over the US President Donald Trump's tax reform plan underpinned the US Dollar and further dented demand for dollar-denominated commodities - like gold. 

   •  US Dollar probing daily highs around 93.00

Investors, however, seemed to downplay expectations of a prolonged slump amid the ongoing geopolitical uncertainty over the Korean peninsula, which tends to support the commodity's safe-haven appeal. 

Later during early NA session, the US macro releases - durable goods orders and pending home sales data, would now be looked upon for some fresh trading impetus.

Technical levels to watch

On a sustained weakness below $1290-88 area, the metal is likely to accelerate the slide towards $1284 horizontal level before eventually dropping to the next support near the $1280 region.

Meanwhile, on the upside, any recovery attempts now seems to confront fresh supply near the $1297-1300 region, above which a bout of short-covering could lift the metal back towards $1310 strong hurdle.