Gold off lows, but keeps red below $1200 mark ahead of NFP

Gold has managed to bounce off multi-week lows but maintained its bearish bias below the key $1200 psychological mark ahead of the US monthly jobs report.

A modest retracement in the US treasury bond yields has resulted into a mildly weaker US Dollar and seems to be a key factor for the yellow metal's rebound from the lowest level since late Jan. 

Meanwhile, readjustment of trading positions, heading into the main event risk- NFP, also seems to have prompted bears to take some profits off the table following the commodity's sharp slide in excess of 4.5% from over 3-1/2 month highs touched on Feb. 27.

The precious metal, however, maintained its bearish tone and is all set for recording its second consecutive week of steep losses amid growing prospects for an eventual Fed rate-hike move. 

Investors now look forward to the official US employment details, due in a short while from now, to reaffirm expectations for Fed rate-hike action next week. 

Technical outlook

Carol Harmer, Founder at charmertradingacademy.com notes, "we know we have to get through the daily pivot at 1202 then we have the 1210 / 1212 resistance which held us at 1209 yester-day...so there is a lot of work to be done on Gold if we are to break higher....The $ has been under a bit of pressure....the Index is lower...so as long as we hold 1191 I am happy to be long....Above 1212 see 1218 then 1226...Now the downside is at 1191....we lose that and we are going to trade lower with 1175 the targeted area.....Blow 1173 and we see 1155....so we really are at critical levels..."