Gold aiming back towards multi-month lows ahead of US ISM PMI

Gold ran through fresh offers and is now heading back to nearly 10-month low touched during early Asian session.

Currently trading around $1168 level, resurgent US Dollar buying interest was seen restricting the metal's recovery witnessed during early European session. However, softer tone surrounding European equity markets has been supportive for traditional safe-haven assets and is assisting the precious metal to defend multi-month lows for the time being. 

Later during NA session, US economic releases that include - weekly jobless claims and ISM manufacturing PMI, would be looked upon for short-term momentum play. While the broader trend would remain dependent on Friday's closely watched NFP data, which would help investors determine the next leg of directional move for the greenback and eventually drive dollar-denominated commodities - like gold. 

Technical levels to watch

From current levels, $1162 (multi-month low) might continue to protect immediate downside, which if broken is likely to accelerate the slide further towards its next important support near $1152-50 region. On the upside, momentum back above $1175 might now trigger an immediate short-covering rally towards $1183-84 horizontal resistance ahead of $1194-95 strong hurdle.