Gold headed back to session tops amid post-NFP USD slide
• USD losses altitude after mixed US jobs report.
• Retreating US bond yields lend additional support.
• Still on track for its lowest weekly close since mid-July.
Gold faded a spike to $1250 level, fresh session tops, and quickly retreated back closer to over 4-month lows in an immediate reaction to mixed US employment details.
The US Dollar lost some ground following a disappointment from average hourly earnings growth figures, which partly negated better-than-expected headline NFP print and provided a minor boost to dollar-denominated commodities - like gold.
However, the prevalent risk-on environment, supported by optimism over the US tax reform legislation continued weighing on the precious metal's safe-haven appeal and kept a lid on any meaningful recovery from multi-month lows.
Meanwhile, the data did little to influence market expectations for an imminent Fed rate hike move next week, albeit a modest retracement around the US Treasury bond yields helped limit deeper losses for the non-yielding yellow metal.
Currently holding near the top end of its daily trading range, the commodity remains on track for its third consecutive week of losses and for its lowest weekly close since mid-July as traders now look forward to next week's highly anticipated FOMC meeting.
Technical levels to watch
The $1244 region seems to have emerged as immediate support, which if broken is likely to accelerate the fall towards $1240 level en-route $1236 support area. On the upside, sustained move beyond $1250 level could trigger a short-covering bounce towards $1260 hurdle with some intermediate resistance near the $1256-57 region.