Gold up-little around $1264, awaits Friday’s US jobs data for fresh impetus

After yesterday's corrective slide from one-month high, gold seems to have regained some traction and rose to session tops near $1264 region.

The precious metal's latest leg of up-move during early European session could be attributed to a fresh wave of greenback selling interest. In fact, the key US Dollar Index has now drifted into negative territory and was seen lending support to dollar-denominated commodities - like gold.

Escalating political worries stemming out investigations into the US President Donald Trump's ties with Russian officials has raised concerns over Trump's ability to push through pro-growth economic policies and has been weighing on the greenback. 

This coupled with political uncertainty ahead of the upcoming UK general election remained supportive of the yellow metal's safe-haven appeal. 

It, however, remains to be seen if the commodity is able to build on the momentum amid growing prospects for an eventual Fed rate-hike action at its June meeting. 

Investors now look forward to the keenly watched monthly jobs report from the US, which would influence market expectations for additional Fed rate-hike move and would eventually determine the next leg of directional move for the non-yielding metal.

Technical levels to watch

Immediate resistance is pegged near $1265-66 region, above which the metal is likely to aim back towards testing $1270 intermediate resistance before eventually darting towards its next major hurdle near $1275-76 region.

On the flip side, weakness below $1259 immediate support now seems to drag the commodity below $1255 intermediate support towards $1250 level en-route the very important 200-day SMA near $1243-42 region.