Gold fails to build on weekly gap-up opening, flat-lined at $1315

Gold failed to build on to its weekly gap-up opening and erased all of its early gains to currently trade absolutely flat amid easing concerns over Deutsche Bank's financial health.

Currently hovering around $1316 level, the precious metal got an initial boost from safe-haven flow after British Prime Minister Theresa May commented over the timing to trigger Article 50 and formally begin the process of ending UK's association with the European Union.

The strength, however, turned out to be short-lived and the yellow metal erased all of its early recovery gains amid prevalent risk-on environment and a relatively stronger greenback, which usually tends to weigh on dollar-denominated commodities - like gold.

Later during NA trading session, US ISM manufacturing PMI might provide some impetus for the greenback and provide short-term trading opportunities. However, broader trend would continue to be driven by investor risk-appetite towards riskier assets, which would eventually derive metal's safe-haven demand.

Technical levels to watch

Immediate downside support is pegged at 100-day SMA near $1310 region, which if broken now seems to turn the commodity vulnerable to break below $1300 handle and head towards testing $1290 support area. On the upside, $1320 level now seems to have emerged as immediate resistance above which the recovery could get extended towards $1325-26 resistance area.