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Gold corrects lower in Asia, near $ 1134

FXStreet (Mumbai) - Gold retreated from weekly highs and stays below 1140 levels as markets resorted to profit-taking after the poor NFP-inspired $ 40 spike seen on Friday.

Gold hovering around 100-DMA

Currently, gold trades -0.18% lower at 1134.60, dropping below 100-DMA. The yellow metal weakened in Asia on the back of correction after the recent rally backed by the dismal US payrolls data, which eased-off 2015 Fed rate-hike expectations and boosted the likelihood of the Fed stimulus to extend into early 2016.

Friday's non-farm payrolls report showed US labour market added only 142,000 workers in September, well below expectations of a 201,000 gain.

Moreover, rallying Asian equities tracking their US counterpart further dulled the gold’s appeal as a safe-haven.

Looking ahead, focus now shifts towards the US services sector data which may have major impact on the USD moves.

Gold Technical Levels

The metal has an immediate resistance at 1137.90 (Today’s High) and 1141.20 (Oct 2 High) levels. Meanwhile, support stands at 1133 (Sept 24 Low) levels below which doors could open for 1127.80 (Sept 18 Low) levels.

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