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Gold extends recovery for 3rd straight session

FXStreet (Mumbai) - Gold price on COMEX continue its recovery mode from multi-year lows for the third day in a row today on the back of robust physical demand and broad USD weakness.

Gold slips below $ 1070

Currently, gold trades almost unchanged at 1068.80, having posted fresh session highs at 1070.80 in early Asia. Gold prices remains supported on the back of the recent correction in the greenback, after markets viewed the recent selling in the EUR/USD backed by further ECB easing, as overdone.

Moreover, a pick-up in the physical demand for the yellow metal at lower levels also aided the ongoing recovery. The US Mint's sales of American Eagle coins rebounded in November from the previous month's slump. While, also reflecting increased demand from China, premiums on the Shanghai Gold Exchange, were at a healthy $5-$6 an ounce.

However, the recovery is expected to remain limited as markets remain cautious heading into the most influential US NFP report due for release on Friday. The payrolls data is the last one before the Fed Dec 16 meeting and above estimates print would seal in a Dec lift-off deal.

Gold Technical Levels

The metal has an immediate resistance at 1070.80 (daily high) and 1074.60 (Dec 1 High). Meanwhile, the major support stands at 1063.40 (Dec 1 Low), below which doors could open for 1055 levels.

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