Gold recovers a major part of early lost ground to over 1-week lows

   •  The USD climbs to two-week tops and keeps exerting downward pressure.
   •  US-China trade optimism further dampens the metal’s safe-haven demand.
   •  Worries over slowing global economic growth might help limit deeper losses.

Gold held on to its weaker tone through the early European trading session, albeit has managed to recover a part of its lost ground to over one-week lows.

The precious metal extended its losing streak for the fourth session in the previous five and corrected farther from nine-month tops amid the continuation of the recent US Dollar rally.

In fact, the greenback climbed to two-week tops on Thursday and was seen as one of the key factors creating bearish pressure on the dollar-denominated commodity since the beginning of this week.

This combined with growing optimism over a possible resolution to the US-China trade disputes further dampened the precious metal's safe-haven status and collaborated to the ongoing slide.

Despite a combination of negative forces, the commodity has managed to defend the key $1300 psychological mark and remained supported by worries over slowing global economic growth.

Hence, it would be prudent to wait for a sustained weakness below the mentioned handle before confirming that the commodity has already topped out in the near-term and positioning for any further near-term downfall. 

There isn't any major market moving US economic data due for release and hence, the USD price dynamics might continue to act as an exclusive driver of the commodity's momentum on Thursday.

Technical levels to watch