Gold corrects from 6-1/2 month tops, slides to $1290 area

   •  Strong opening across European bourses prompts some profit-taking.
   •  Downside remains cushioned amid the prevalent USD selling bias.
   •  Focus remains on today’s important release of the US monthly jobs data.

Gold started correcting after refreshing 6-1/2 month tops and is currently placed at session lows, around the $1292-91 region.

The overnight news that Apple lowered its quarterly sales forecast, which followed the recent weakness in Chinese macro data fueled concerns over a potential downturn in the global economy and continued driving safe-haven flows, lifting the precious metal to its highest level since mid-June. 

The positive factor, to some extent, was negated by some renewed optimism over a possible resolution to the US-China trade disputes. This coupled with a strong rebound in global equity markets and a goodish pickup in the US Treasury bond yields kept a lid on any strong follow-through for the non-yielding yellow metal.

The downside, however, is likely to remain cushioned amid the prevailing bearish sentiment surrounding the US Dollar, which tends to underpin demand for the dollar-denominated commodity, and ahead of today's key release of the closely watched US monthly jobs report, popularly known as NFP.

Technical levels to watch