Gold off highs post-Payrolls, back below $1,330

After a short-lived spike to session highs at $1,336, the troy ounce of the precious metal has lost momentum and is now retreating to the $1,225 area.

Gold well supported at $1,300

The yellow metal has advanced to multi-day tops beyond the $1,330 area today, extending yesterday’s bounce off the key support around the $1,300 mark after US Payrolls showed the economy has added less jobs than expected (151K) and the unemployment rate stayed unchanged at 4.9% vs. estimates for a drop to 4.8%.

Market expectations of a September hike by the Fed have been revised lower in the wake of the US labour market figures, collaborating with Gold’s upside and capping further any bullish attempt in USD.

Gold key levels

As of writing Gold is up 0.66% at $1,325.85 and a break above $1,355 (high Aug.16) would open the door to $1,366.00 (high Aug.2) and finally $1,374.90 (2016 high Jul.6). On the other hand, the immediate support lines up at $1,301.50 (low Sep.1) followed by $1,312.80 (low Jul.21) and then $1,301.34 (23.6% Fibo of the 2016 up move).