Gold steadily climbs to fresh 2-week tops on weaker USD

   •  Passage of the US tax bill fails to lift USD and helps gain traction.
   •  Reviving safe-haven demand provides an additional boost.

Gold edged higher through the early NA session on Wednesday and is currently placed fresh two-week tops, around the $1266 region.

Optimism over the biggest tax overhaul in 30 years quickly faded and offered no support to the US Dollar, which was eventually seen benefitting dollar-denominated commodities - like gold.

Adding to this, reviving safe-haven demand, supported by weaker trading sentiment around equity markets, further collaborated to the precious metal's bullish momentum on Wednesday.

With today's strong up-move, the yellow metal recovered around 2.4%, or $30, from last week's near five-month lows and has now moved within striking distance of testing the very important 200-day SMA barrier.

Today's US economic docket, featuring the only release of existing home sales data, is unlikely to hinder the upward trajectory, while a modest uptick in the US Treasury bond yields could possibly keep a lid on strong follow-through up-move for the non-yielding metal.

Technical levels to watch

Bulls would be eyeing for a breakthrough $1268-69 zone (200-DMA), above which the commodity seems all set to test $1274-76 supply zone before eventually darting towards 100-day SMA hurdle near the $1285 region.

On the flip side, $1262-61 area now seems to act as immediate support, which if broken might turn the metal vulnerable to head back towards testing $1250 support with some intermediate support near the $1257-56 region.