• A modest USD rebound prompts some fresh selling on Friday.
• Positive opening across European bourses dent safe-haven demand.
• Today’s NFP report might influence rate hike expectations and provide fresh impetus.
After an initial uptick to $1314 area, Gold met with some fresh supply and was now seen extending overnight retracement from multi-day tops.
A modest US Dollar rebound, amid some repositioning trade ahead of today's important release, was seen as one of the key factors prompting some fresh selling around dollar-denominated commodities - like Gold.
This coupled with a positive opening across European bourses further dented demand for traditional safe-haven assets and contributed to the precious metal's modest retracement slide.
Currently placed around the $1310 region, the commodity has now eroded a part of previous session's strong gains and snapped two-consecutive days of winning streak as investors start repositioning for the keenly watched US monthly jobs report.
The headline NFP print and average hourly earnings growth data might influence Fed rate hike expectations and eventually act as a fresh catalyst determining the next leg of the directional move for the non-yielding yellow metal.
Technical levels to watch
Any meaningful retracement might continue to find support near the very important 200-day SMA, currently near the $1304 region, which if broken now seems to pave the way for an extension of the metal's near-term bearish trajectory.
On the upside, sustained move back above $1315 level might now trigger a short-covering rally towards $1323-25 supply zone before the commodity eventually darts towards testing its next major hurdle near the $1330 region.
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