Gold is seen building on to its yesterday's recovery gains from sub-$1350 level to currently trade around $1362 level, heading for second consecutive weekly gains.
A fresh bout of volatility led by Bank of England's surprise announcement of additional quantitative measured to the tune of 60 billion Pounds, over and above 25bps rate-cut, boosted the safe-haven appeal of the yellow metal. The metal jumped to $1365 before trimming some of its gains to finally settle just below $1360 level.
On Friday, the precious metal maintained its bid tone amid cautious trade ahead of the keenly watched US non-farm payrolls data (NFP), which is known to trigger substantial volatility in global financial market and hence, would provide some trading opportunity for short-term traders.
Technical levels to watch
Momentum above weekly high resistance near $1367 seems to boost the pair immediately towards post-Brexit swing highs resistance near $1375 level, above which a fresh leg of bullish traction seems to assist the metal towards reclaiming the very important $1400 psychological mark.
On the flip side, $1358 (session low) seems to protect immediate downside and is followed by support near $1350 level. A follow through selling below $1350 support might now force the commodity to extend its corrective move towards 20-day SMA support near $1340-38 region.
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