Gold regains $ 1300, will it sustain ahead of NFP?

Gold stages a solid comeback in the European session, climbing back above $ 1300 mark as the US dollar recovery lost steam across the board, as investors turn on the side-lines ahead of the much-awaited US NFP report.

Gold bounces-off lows ahead of 5-DMA

Currently, Comex gold futures trade -0.05% lower at 1302.75, hovering close to fresh session highs of $ 1303.65 reached some minutes ago. Gold prices caught a fresh bid-wave on the back of increased demand for safe-havens, after the European stocks extended sell-off amid persistent US election jitters-led risk-off moods.

Moreover, stalled USD buying against its main peers also collaborated to the renewed optimism behind the yellow metal. However, the upside looks limited as traders refrain from creating fresh positions in the commodity ahead of the main risk event for today, the US non-farm payrolls data, which will be released in the NA session.

Markets are expecting a strong NFP print today, which will further bolster Dec Fed rate hike bets and propel a fresh USD rally and eventually weigh on the USD-sensitive gold. However, limited reaction could be witnessed on the NFP release, as the USD price-action now remains at the mercy of the outcome of next week’s US presidential elections.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1310 (round figure) and 1313.70 (100-DMA). Meanwhile, the support stands at 1293.83 (5-DMA) below which doors could open for 1289.58 (200-DMA).

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