Gold retreats from 1-week tops, up-little around $1276 level

   •  Once again fails to clear $1280 supply zone.
   •  Fed rate hike prospects capping gains. 
   •  Next Fed chair announcement and tax-cut legislation awaited.

Gold trimmed some of its early gains to fresh 1-week high but has still managed to hold in positive territory for the second consecutive session.

A modest US Dollar retracement benefitted dollar-denominated commodities and helped the precious metal to build on modest overnight gains. Adding to this, a fresh wave of global risk-aversion traded provided an additional boost to traditional safe-haven assets and collaborated to the commodity's up-move on Thursday.

However, growing market conviction that the Fed would raise interest rates in December, reaffirmed by the central bank's monetary policy statement on Wednesday, capped additional gains for the non-yielding yellow metal. 

   •  Gold risk reversals - bearish bias intact

The announcement of a next Fed chair and the long-awaited US tax-cut legislation would be in focus on Thursday, which along with Friday's NFP data would help investors determine the metal's near-term trajectory. 

   •  House of Republicans to unveil tax reform bill at 1515 GMT

Technical levels to watch

A follow-through retracement below $1274 level could get extended towards $1270 horizontal zone ahead of an important support near the $1267 region.

On the upside, $1280 area remains an immediate strong hurdle, which if conquered is likely to trigger a short-covering bounce and lift the commodity above $1284-85 supply zone towards its next barrier near the $1290 region.