Gold spikes to weekly tops, near $1345 level

   •  Fresh US-China trade tension prompts safe-haven buying.
   •  Weaker USD/sliding US bond yields supportive of the up-move.
   •  Traders now eye US economic data for some fresh impetus.

Gold regained positive traction on Wednesday and spiked back to weekly tops, reversing all its previous session's retracement slide.

Trade war tensions between the world's two largest economies escalated after the US slapped tariffs on $50 billion worth Chinese imports. China retaliated by imposing new tariffs on imports from the US and underpinned demand for the precious metal's safe-haven appeal. 

The latest development also took some shine off the US Dollar and provided an additional boost to the dollar-denominated commodity. This coupled with a weaker tone around the US Treasury bond yields remained supportive of the up-move for the non-yielding yellow metal.

Investors now look forward to the US economic docket, featuring the release of ADP report on private sector employment and ISM non-manufacturing PMI, for some fresh impetus later during the early NA session.

Technical levels to watch

A follow-through buying interest has the potential to continue boosting the metal further towards $1352-53 supply zone, above which the momentum could get extended towards Feb. swing highs resistance near the $1361 level.

On the flip side, retracement back below $1340 level could further drag the commodity towards $1332 area, which if broken might expose $1325 strong horizontal support.