Gold turns flat at $1316, as USD regains traction

Gold erased majority of its tepid recovery gains to $1323 and has now turned flat to currently trade around $1316 level ahead of US existing home sales data.

The precious metal lost its recovery momentum after ECB decided to hold its current monetary policy stance unchanged. Moreover, a tepid recovery in the greenback, as measured by the US Dollar index, is also weighing on the dollar-denominated commodities - like gold. 

Earlier on Thursday, the yellow metal touched a 3-week low before finding some respite as the US Dollar remained on the back-foot amid cautious market sentiment. However, a the buck regained its traction after the release of better-than-expected weekly jobless claims data, the precious metal lost its shine and drifted back into negative territory. 

Incoming positive US economic data continues to revive hopes of an imminent Fed rate-hike later during this year, which might continue to keep gold prices suppressed in the near-term.

Technical levels to watch

From currently levels, $1310-05 area seems to provide immediate support, below which the commodity seems to drift towards testing 50-day SMA support near $1285 region. On the flip side, $1325 area now seems to have emerged as immediate resistance, which if conquered seems to assist the metal towards $1335 resistance before boosting it further towards its next major resistance near $1350 level.