Gold jumps-off $ 1250, but below 200-DMA ahead of NFP

Gold is currently making attempts to regain 200-DMA, having embarked upon the recovery mode from a fresh downward spike reached at 1250.25 in early trades.

Gold capped by 200-DMA

Currently, gold trades +0.13% higher at 1257, recovering slightly from fresh four-month lows reached at 1249.83 a day before. Gold attempts a minor-recovery so far this session amid underlying Asian risk-off theme, triggered by a massive sell-off in the GBP/USD pair on Reuters report of plausible ‘fat finger’ error.

Moreover, a bout of profit-taking after the recent slide heading into the highly-influential NFP figures, also cannot be ruled out as one of the reasons behind gold’s bounce.

Focus now remains on the US non-farm payrolls data due later in the US session, which may add to the recent signs of strength seen in the US economic performance and hence, could raise bets for a Dec rate hike.

Gold Technical Levels                                   

The metal has an immediate resistance at 1260.41 (200-DMA) and 1272.33 (5-DMA). Meanwhile, the support stands at 1249.83 (4-month lows) below which doors could open for 1240 (round figure).