Gold fades a spike to $1180, NFP in focus

Gold remains strongly bid, although trims gains amid a broader recovery in the US dollar, with all eyes now focused on the upcoming US labor market report for fresh incentives.

Gold back below 5-DMA at $ 1178.40

Currently, Comex gold futures trade +0.53% higher at 1175.55, having posted a day’s high at 1179.75 and day’s low at 1172. Gold prices stalled its rebound from ten-month troughs in the Asian session, as sentiment towards the US dollar appears to turn positive, as markets prefer to hold the US currency heading into the much-awaited US NFP data.

However, not much reaction is expected on the data release, as investors have priced-in a Dec Fed rate hike, while a bullish print will only confirm a Fed rate rise later this month.

However, the retreat remains restricted as markets seek safety bets such as gold ahead of Sunday’s Italian referendum, which is expected to spur massive valiantly across the financial markets, and incase the Italian PM Renzi loses in the election, we could see a major risk-aversion across the financial markets, eventually boosting gold’s safe-haven appeal.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1189 (round figure) and 1184.20 (10-DMA). Meanwhile, the support stands at 1172 (daily low) below which doors could open for 1167.17 (daily pivot).