Gold Rebounds in Asia, but Stays Below 5-DMA - NFP Eyed
The yellow metal caught a fresh bid-wave in the Asian session, staging a
recovery from four back-to-back sessions of losses ahead of the highly
influential US jobs data.
Gold flirts with $ 1280 barrier
Currently,
gold jumps +0.11% to 1280, hovering close to fresh session highs
reached at 1280.61 last minutes. The bullion picked-up significant
strength in the last hour as the Asian equities tumbled on the back of
overnight weakness in the oil prices, boosting the safe-haven bids for
gold.
Adding to the upbeat tone around gold,
markets resort to covering their short positions after the recent
sell-off, in a bid to minimize risks ahead of the key US macro data,
NFP, due later in the NA session. Markets are expecting a robust 200,000
increase in payrolls coupled with a respectable 0.3% gain in hourly
wages.
The US jobs report is
expected to provide fresh hints on a June Fed rate hike outlook,
especially after recent string of hawkish Fed speaks, which pointed
towards a June Fed hike.
Gold Technical Levels
The metal has an immediate resistance at 1283.13/85 (5-DMA) and 1301.79/03.79 (multi-month tops). Meanwhile, the support stands at 1275 (round figure) below which doors could open for 1265 (Apr 29 Low).
