Gold resumes rally towards $ 1160 ahead of NFP

Gold futures on Comex resumed the ongoing bullish run and jumped to the highest levels since Oct 29 during the European trades, as we head towards the US NFP data.

Gold: 1160 on sight

Currently, gold trades modestly flat at 1157.80, retreating slightly from fresh four-month highs reached at 1158.80 last minutes. The yellow metal rebounded sharply from 1153.70 lows and went on to reach fresh multi-month highs as markets begin to pricing-in weaker than expected US NFP data to be released later today.

The US economy is expected to have added around 189,000 jobs last month, sharply lower from 292,000 jobs added in December.

Further, the bullion ignored the positive sentiment on the European indices and gathered momentum, as the recovery in the greenback against its major rivals, appears to falter over the last hours.

Gold Technical Levels

The metal has an immediate resistance at 1160 (psychological levels) and 1165 (Oct levels). Meanwhile, the support stands at 1151.47/50 (daily pivot/ round number) below which doors could open for 1140.98 (50-WMA).