Gold edges higher on Trump remarks, inching closer to $1290 level

Gold gained some fresh traction on Wednesday and inched higher through early European session, recovering part of previous session's lost ground. 

The precious metal fell on Tuesday and was being weighed down by a strong US Dollar recovery, which tends to dent demand for dollar-denominated commodities. 

Some renewed safe-haven demand, after the US President Donald Trump threatened a government shutdown if Congress doesn't fund for a proposed border wall with Mexico, helped the yellow metal to catch some fresh bids on Wednesday.

Meanwhile, the greenback managed to preserve overnight strong recovery gains and seems to be only factor keeping a lid on any further up-move for the commodity. 

   •  US Dollar sticks to gains near 93.50

Looking at the broader picture, the metal remains confined within a 5-day old trading range as investors refrained from placing aggressive bets ahead of the much awaited Jackson Hole Symposium. The Fed Chair Janet Yellen's comments would influence rate hike expectations and eventually determine the next leg of directional move for the non-yielding metal. 

Technical levels to watch

A follow through momentum back above $1288 level could get extended towards $1294-95 strong horizontal resistance before the metal makes a fresh attempt towards conquering the $1300 important mark. On the flip side, retracement below $1283 level, leading to a subsequent break below $1280 support, could drag the commodity back towards retesting $1274-73 strong support.