Gold sits at 2-month lows near $ 1270, NFP eyed

Gold futures on Comex trades at the lowest levels in eight-week and remains on track to book the fourth weekly decline in a row ahead of the US NFP data release.

Gold: Downside opening up towards $ 1250?

The non-interest bearing gold came under renewed selling pressure yesterday, after the US dollar rallied hard in tandem with Treasury yields, following hawkish remarks from the FOMC members George and Harker, who backed the case for a Dec rate hike.

Moreover, the recent bullish US fundamentals combined with progress on tax reforms also boosted the USD bulls, knocking-off the USD-denominated commodity to multi-week troughs.

Looking ahead, the US labour market report remains the main risk event for the precious metal, with upbeat readout across all the indicators could trigger a fresh sell-off in gold towards 1250 levels.

Gold Technical Levels:

Ross J. Burland, Analyst at FXStreet noted: “On the downside, $1262 (200-DMA), if broken opens risk to $1251 (Aug. 8 low) and $1243 (Jul. 26 low). On the flipside, resistances comes back in at $1282 (Oct. 4 high), $1295 (20-DMA) and $1300 (psychological level).”