Gold stages solid rebound to test $ 1200 amid risk-off

Gold staged a solid comeback in the Asian hours this Monday, mainly driven risk-off market profile as we head into a big week ahead, with the impending OPEC decision and US payrolls data eagerly awaited.

Gold regains 5-DMA and beyond

Currently, Comex gold futures jump +1.41% to trade at fresh session highs of $1195, eyeing for a break above 1200 levels. Demand for the safe-havens is seen on the rise, with the ultimate safety bet, gold, benefiting the most amid widespread risk-aversion, as increased concerns over OPEC’s intent to reach an output cut deal this week leaves investors jittery.

Moreover, extension of the corrective slide in the US dollar versus its major peers, also underpins the sentiment around the bullion. A weaker US dollar makes the USD-denominated commodity cheaper for the holders in foreign currencies and vice-versa.

Looking ahead, the yellow-metal will continue to take cues from the broader market sentiment, awaiting fresh impetus from the US macro news lined up for release later this week, which includes the highly influential prelim GDP figures and NFP report.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1200 (key resistance) and 1210 (round figure). Meanwhile, the support stands at 1186.50 (5-DMA) below which doors could open for 1177 (multi-month low).

To learn more about this topic, check our video analysis