Gold eases from tops, still well bid near 5-month tops

Haresh Menghani FXStreet

• Dismal headline NFP print prompts some USD selling and provides a lift.
• Risk-on mood/goodish pickup in the US bond yields seemed to cap gains.

Gold trimmed a part of the post-NFP spike, though remains within striking distance of fresh five-month tops touched in the last hour.

The US Dollar held on the defensive, rather lost some additional ground following a big disappointment from today's headline NFP print and was seen as one of the key factors that provided a goodish lift to the dollar-denominated commodity.

However, the prevalent risk-on mood, which tends to dampen demand for the precious metal's safe-haven status, coupled with a goodish pickup in the US Treasury bond yields kept a lid on any runaway rally for the non-yielding yellow metal.

Despite some bullish reluctant, the commodity remains on track to end the week on a positive note and record its highest weekly close since early July.

Technical levels to watch

A follow-through buying has the potential to continue lifting the commodity further towards $1250 mark en-route the next major hurdle near the $1257-58 region. On the flip side, the $1240-38 region now becomes immediate support to defend, which if broken might trigger some additional weakness towards $1234-33 support zone.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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