Gold witness a tepid bounce to $1326 from 1-month lows

Gold has managed to bounce-off nearly 1-month low of $1323 touched during early Asian session on Thursday and is now trading with minor recovery gains at $1326 level. 

On Wednesday, the yellow metal suffered sharp losses on a broad based greenback recovery, as measured by the overall US Dollar Index, which was seen weighing on dollar-denominated commodities - like gold. Despite of recent mixed economic indicators from the US, a series of hawkish rhetoric from some Fed officials pointed to an eventual rate-hike this year. Hence, expectations now seem to be shifting towards a hawkish tone from the Fed Chair Janet Yellen's speech at a closely watched central bank's retreat in Jackson Hole on Friday. 

In the meantime, Thursday's release of durable goods order and weekly jobless claims data from the US, ahead of Friday's revised US GDP print, will be looked up0n for some immediate short-term momentum play. 

From technical perspective, the commodity has broken below a near-term trading range (rectangular chart-pattern formation on daily chart) and thus, remains vulnerable to extend its near-term corrective move. 

Technical levels to watch

From current levels an important support break-point near $1330-31 area, also coinciding with 50-day SMA, now seems to act as immediate resistance. Any further recovery above this immediate resistance might now be capped at $1335-36 strong resistance. 

Meanwhile on the downside, weakness below $1323 level is likely to accelerate the downslide immediately towards $1315-10 intermediate support before the metal eventually drops below $1300 round figure mark support and head towards testing 100-day SMA support near $1292-90 region.