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Gold eyes worst week in 8 months, NFP in focus

FXStreet (Mumbai) - Gold prices continue to trade around a flat-line in the Asian trades, keeping range near eight-week lows, as all eyes turn towards the much-awaited US employment data for fresh cues on the Fed interest rate outlook.

Gold holds above $ 1100

Currently, gold trades 0.31% higher at 1107.50, recovering from fresh eight-week lows struck at 1102.20 just before NY close. Gold is currently fighting hard to recover lost ground somewhat and trades near session highs as USD bulls take a breather and stall its recent winning-streak ahead of the US jobs data.

Markets now await the US non-farm payrolls data due later in the day, which may shed fresh light on whether the Fed will raise rates at Dec 16 meeting. Gold remains pressured as higher interest rate environment dulls gold’s appeal, which is a non-interest bearing asset.

Further adding to the negative sentiment around the bullion, Assets in SPDR Gold Trust, the top gold-backed exchange-traded fund, tumbled to 671.77 tonnes on Thursday, the lowest since mid-August. While the fund saw outflows of 8.34 tonnes, the biggest daily drop since July 17.

Gold Technical Levels

The metal has an immediate resistance at 1110.70 (1h 50-SMA) and 1113.50 (Sept 10 High). Meanwhile, the major support stands at 1100/1098.20 (Psychological levels/ Sept 11 Low), below which doors could open for 1094 (Aug 11 Low).

Asian markets stay positive ahead of NFP

Stocks on the Asian bourses are seen trading mixed, unimpressed by the negative close on the Wall Street overnight and by the drop in energy prices. While traders prefer to stay on the side-lines ahead of the highly-influential US labour market report due later today, which is likely to confirm a Fed Dec rate hike.
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The AUD/JPY cross reverses a spike to highs and now retreats below 87 handle, as markets continue to digest the latest RBA Statement of Monetary Policy (SoMP), which turned out to be mixed.
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