Gold rallies to session tops, beyond $1280 level

   •  A subdued USD price action triggers the initial leg of bounce from one-week lows.
   •  Subsequent up-move followed a downward revision of the US Q1 GDP growth.
   •  Bulls shrug off rebounding US bond yields and signs of stability in equity markets.

Gold reversed an early dip to one-week lows and rallied to fresh daily tops, above $1280 level during the early North-American session.

Having dropped to a session low level of $1275, the previous metal witnessed an intraday turnaround and has now moved into positive territory. The initial leg of recovery from an intraday low level of $1275 was led by a subdued US Dollar price action, which tends to underpin the dollar-denominated commodity. 

Meanwhile, the latest leg of a sudden pickup in the last hour lacked any obvious catalyst but came after the release of prelim US Q1 GDP print, coming in to show that the world's top economy expanded at an annualized pace of 3.1% during the January-March quarter as compared to 3.2% estimated initially. 

The positive momentum seemed rather unaffected by improving risk sentiment, as depicted by signs of stability in equity markets and reinforced by a goodish rebound in the US Treasury bond yields, which tends to dent the non-yielding yellow metal's perceived safe-haven status.

Hence, it would now be interesting to see if the up-move is backed by any genuine buying or is solely led by some intraday short-covering amid fears over a further escalation in the US-China trade tensions and concerns about the global economic growth.

Technical levels to watch