Gold well bid in Asia, on its way to $ 1250?

Gold finally broke the overnight consolidation box to the upside as we progress towards the mid-Asian trades, catching a fresh bid over the last hour as risk-off moods intensified amid renewed selling in the Asian equities.

Gold heads towards $ 1250 mark

Currently, gold now trades 0.27% higher at 1247.50, easing-off fresh two-day highs reached at 1248.17. The bullion faced strong offers once ahead of 50-DMA barrier and turned slightly lower, although remains strongly bid as the US dollar extends the poor NFP-induced drop against its major competitors, with the USD index now languishing near four-week lows of 93.70.

The bullion regains poise and looks to test weekly highs as expectations of a summer Fed rate hike are almost killed after disastrous May jobs report and Yellen’s ambiguous comments. A lower interest rate environment remains gold-supportive as it is a non-interest paying investment asset. Moreover, a renewed bout of risk-aversion gripped the Asian markets, which also added to the upbeat sentiment around the safe-haven gold.

Markets now eagerly await the Chinese exports & imports data due to be published shortly for fresh cues on the precious metal. While US JOLTS jobs openings data will be closely eyed amid a data-light US session today.

Gold Technical Levels                                   

The metal has an immediate resistance at 1250 (round number) and 1255 (previous tops). Meanwhile, the support stands at 1237.68 (5-DMA) below which doors could open for 1228 (100-DMA).