Gold remains confined in a broader trading range

Gold extended its rebound from yesterday's low at $1335 level and jumped close to weekly high before retracing a bit to currently trade around $1350 region.

Dovish Fed minutes helped the yellow metal to rebound on Wednesday from its near-term trading range support around 20-day SMA. A broadly weaker greenback boosted dollar-denominated commodities, including gold, and assisted the precious metal to build on to its recovery and move back above $1350 level.

The commodity, however, remained confined in a short-term trading range and has struggled for a firm near-term direction in absence of any major fundamental trigger. However, weaker US Dollar has been acting as a supportive pillar and hence, a follow through selling pressure surrounding the buck should limit any sharp downslide. However, buoyant sentiment surrounding equity markets is likely to dent the metal's safe-haven appeal and restrain it within a broader trading range.

Later during NA trading session, US macro releases should provide some fresh impetus and help traders to grab immediate momentum play.

Technical levels to watch

From currently levels, $1357-58 remains immediate resistance to clear, above which the commodity is likely to head towards testing $1365 barrier before making a fresh attempt to move back towards post-Brexit highs resistance near $1375 region.

On the flip side, 20-day SMA near $1340 region, followed by Wednesday's low near $1335 level, might continue to protect immediate downside, which if broken decisively seems to drag the metal immediately towards $1330 intermediate support before aiming towards retesting an important support near $1315 level.