Gold struggling for direction, focus remains on US jobs data

After yesterday's pull-back from 2-1/2 month highs, nearing 100-day SMA resistance, gold retreated further on Friday amid modest greenback recovery.

The precious metal, however, has managed to recover from session low near $1211 level and is currently trading nearly unchanged from yesterday's closing, around $1214 region. Pre-NFP repositioning trade helped the US Dollar to extend Thursday's recovery move from 11-week lows and weighed on dollar-denominated commodities - like gold.

Meanwhile, cautious investor sentiment, ahead of the big event risk, has lend some support to the yellow metal's safe-haven appeal and limited additional corrective slide, at least for the time being. 

Investors on Friday will remain focused on the release of official jobs report from the US, which is traditionally know to trigger substantial volatility in global financial markets and would derive the metal's safe-haven demand. Moreover, today's NFP data would also assist investors to gauge possibilities, and timing of next Fed rate-hike action, and eventually provide fresh impetus for the non-yielding metal.

Technical levels to watch

A follow through retracement below $1210-09 area, the commodity is likely to turn vulnerable to head back towards retesting $1200 psychological mark support, en-route $1190-89 region. On the upside, momentum back above $1217 level might lift the metal back towards 100-day SMA hurdle near $1125 region, which if cleared would pave way for continuation of the near-term upward trajectory towards $1233 (Nov. 16 high).