Gold eases-off fresh 9-day highs, below 50-DMA

Gold failed to sustain above 50-DMA barrier and now extends its retreat from more-than one week tops on the back of broad based US dollar recovery as dust settles over the NFP aftermath.

Gold drops from above $ 1248 highs

Currently, gold now trades -0.18% lower at 1242, having posted fresh nine-day highs at 1248.73 and day’s low at 1240.90. The bulls take a breather from the recent upsurge, with the bullion now correcting heavy gains witnessed since Friday’s US jobs data release, after the headline NFP posted horrid figures and faded hopes for a Fed rate hike this month or even in July. Gold tends to benefit in a low interest rates environment as it is a non-interest paying investment asset.

Following the US labour market report, investors turned risk-averse and flocked to the safe-haven gold, sending the prices nearly $ 40 higher intraday on Friday. As for today’s trade so far, the yellow metal rallied to fresh nine-day tops earlier on the day amid weaker equities, although met fresh supply at higher levels as the greenback regained lost ground somewhat against its major peers.

Gold markets now eagerly await Fed Chair Yellen’s speech due later tonight for fresh cues on the Fed rate hike prospects this year.

Gold Technical Levels                                   

The metal has an immediate resistance at 1246.73 (50-DMA) and 1250 (round number). Meanwhile, the support stands at 1230 (round figure) below which doors could open for 1224.50 (100-DMA).