Gold heads towards $ 1210 as DXY breaches 101 support

Gold prices on Comex extend its post-NFP recovery into early Europe, as the bulls gain further momentum amid ongoing bearish correction in the US dollar across the board.

Gold supported at $ 1203

Currently, gold jumps +0.50% to fresh three-day highs of $ 1207.55, extending the break beyond $ 1200 levels. Gold stages a solid rebound from five-week troughs as dismal US hourly wages data released on Friday, triggered a fresh corrective slide in the US dollar versus most of its majors, benefiting USD-sensitive gold. A weaker greenback makes USD denominated commodity cheaper for the foreign buyers and vice-versa.

Moreover, the safe-havens such as the yen, gold etc. are also bid as investors seek safety ahead of the key risk events lined up this week. Markets are expected the Article 50 trigger by the UK PM May as soon as tomorrow, while increased nervousness ahead of the Fed, BOE, BOJ and SNB policy outcomes  adds to the recovery in gold.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1210 (zero figure) and 1215.88 (10-DMA). Meanwhile, the support stands at 1200 (key support) below which doors could open for 1195.55 (100-DMA).