Gold rebounds from weekly lows, turns neutral around $1945 region

Gold managed to recover the early lost ground to weekly lows and was last seen trading in the neutral territory, around the $1945 region.

The precious metal found a decent support near a three-month-old ascending trend-line, around the $1927 region, and gained some traction during the early North American session. The US dollar struggled to preserve its early gains despite a larger than expected drop in the US Initial Jobless Claims and extended some support to the dollar-denominated commodity.

Separately, the US ISM Non-Manufacturing PMI edged lower to 56.9 in August as compared to consensus estimates pointing to a drop to 57 from 58.1 previous. The greenback was pressured by a sharp turnaround in the US equity markets, which further collaborated towards driving flows towards the non-yielding yellow metal.

The uptick could also be tied to a cautious opening in the US equity market, which tends to underpin the precious metal's relative safe-haven status. Bulls, however, lacked any strong conviction and refrained from placing any aggressive bets ahead of Friday's release of the closely watched US monthly jobs report – popularly known as NFP.

From a technical perspective, the commodity has been showing some resilience near the mentioned trend-line support. This makes it prudent to wait for a convincing breakthrough before positioning for any further depreciating move. Conversely, any meaningful move up is more likely to confront a stiff resistance ane remain capped near the $1970-72 area.

Technical levels to watch