Gold off session lows but remains below 200-DMA, NFP in focus

Having retested $1250 level, Gold has managed to reverse some of its losses and has now turned neutral but remained below the very important 200-day SMA.

Currently hovering around $1255 region, the precious metal on Wednesday ended lower for eighth consecutive session and dropped below 200-day SMA to test nearly four months low. The incoming US economic data has kept alive investors' expectations of further Fed rate-hike action and has been weighing on non-yielding commodity, gold. 

On Friday, the yellow metal attempted a tepid recovery amid risk-off sentiment led by a sharp sell-off in the British Pound. The recovery, however, failed to lift the commodity back above 200-day SMA as investors now look forward to one of the most influential market-moving releases, US monthly jobs report, popularly known as NFP, which is known for generating substantial volatility across global financial markets and would eventually derive the safe-haven demand of the metal.

Technical levels to watch

On a decisive break below $1250 immediate support, the commodity is likely to drift towards $1245-44 horizontal support before heading towards an important support near $1235 region.

Alternatively, recovery back above 200-day SMA support turned resistance near $1260 region seem to get extended towards $1266-67 horizontal resistance above which a fresh bout of short-covering could lift the commodity towards its next major resistance near $1276-77 area.