Gold erases tepid recovery gains as USD strengthens

Gold erased early recovery gains and turned lower to hit a fresh session low level of $1320 amid a tepid recovery in the greenback. 

A stronger greenback tends to dent dollar-linked commodities - like gold, and has been the sole factor responsible for the yellow metal's reversal from session peak. 

Currently trading near Wednesday's closing level at around $1322, the precious metal on Thursday got an initial boost from weaker greenback, which saw some selling pressure on improving investor risk appetite led by late Wednesday OPEC deal to cap oil output. 

The optimism, however, seems to have cooled off a bit, with the overall US Dollar Index reversing early losses and is now weighing on commodities pegged with USD.

Looking forward, today's release of the final print of US GDP growth for second quarter of 2016 will now be looked up0n for fresh impetus.

Technical levels to watch

On a sustained weakness below session low support near $1320, the metal seems to aim back towards testing 100-day SMA support near $1310 region. On the upside, recovery momentum above session high resistance near $1326 level now seems to be capped at 50-day SMA support break turned strong resistance.