Gold extended its profit-taking slide from multi-month highs for the third consecutive session and dipped below the $1300 mark, albeit has managed to bounce off lows.
A quick reversal in investors' risk appetite, following Tuesday’s North Korean headlines, exerted some bearish pressure around the safe-haven precious metal.
Wednesday's upbeat US economic reports - ADP and GDP, helped the US Dollar Index to extend its solid rebound from over 2-1/2 year lows and further dented demand for dollar-denominated commodities - like gold.
Adding to this, today's upbeat Chinese manufacturing PMI added to the buoyant sentiment and contributed to the yellow metal's fall back below the key $1300 psychological mark.
The metal, however, showed resilience at lower level and has recovered back to $1307 level amid persistent concerns around North Korea-related tensions.
Moreover, investors also seemed reluctant to place aggressive bets ahead of Friday’s keenly watched NFP data, which might influence the Fed’s near-term monetary policy outlook and eventually provide fresh impetus to the non-yielding commodity.
Ahead of the official jobs report, today’s US economic docket would be looked upon to grab some short-term trading opportunities.
Technical levels to watch
Bulls would be eyeing for a sustained move beyond $1310 level, above which the metal is likely to head towards $1315 hurdle before eventually darting towards yearly tops resistance near the $1325 region.
On the flip side, a decisive break below the $1300 mark could extend the corrective slide towards $1292-91 horizontal support ahead of $1284 level.
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