Gold inter-markets: Targets 200-DMA on stronger NFP

Gold has stalled its recent bullish momentum and is on an upside consolidative mode since Wednesday, when it reached fresh four-week highs at $ 1307.

The range bound movement witnessed in gold in the latter part of this week is largely due to choppy trading activity surrounding the greenback across the board, in wake of US presidential elections scheduled next week.

Gold continued to find support from risk-off sentiment amid US election jitters, which continued to dominate financial markets, and underpinned its safe-haven status.

On Friday, a typical calm was spread around the gold markets, in anticipation of the highly influential US NFP data, which is likely to trigger massive volatility and have a significant impact on the US interest rates decision.

A better NFP print is likely to seal in a Dec Fed hike deal, thus, dragging the non-interest bearing gold back towards 200-DMA at $ 1289 levels. While the prices could head higher for a retest of monthly tops and beyond, should the jobs report disappoint markets.

Key event: US election panel

Meanwhile, don't miss our US election panel with expert guests, Adam Button and Martin Armstrong, hosted by FXStreet's Ross Burland. 

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