Gold was up a shade on Thursday after the dollar flip-flopped in the wake of mixed U.S. data and as scepticism grew over whether OPEC members would be able to implement production cuts that could fuel inflation. The dollar index, which measures the greenback against a basket of currencies, rose to a session high after stronger than expected data on U.S. second-quarter economic growth and weekly jobless claims. The dollar, however, pared gains after further data showed contracts to buy previously owned U.S. homes dropped in August to their lowest level since January. When positive data is released, investors raise bets on a U.S. interest rate hike, which would increase the opportunity cost of holding non-yielding bullion. Gold pared earlier gains in the aftermath of a decision by the OPEC on Wednesday to make modest output cuts. The news gave oil an initial boost, only for the price to slip as investors questioned whether the deal would be enough to rebalance a heavily over supplied market.

On chart, gold was little changed on Thursday, trading within a narrow range between $1,310-$1,330. The MACD index is moving toward the axis zero, indicating a balance between bulls and bears. Rangebound will dominate the market in near term. Investors can keep an eye on the support below $1,310. Gold is expected to recover after hitting the level.
 

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