Gold trims early spike to 5-month high, still holding above key 200-DMA technical level

Gold trimmed some of its early gains to nearly 5-month high on geopolitical tensions but maintained its bid tone above the key 200-day SMA break-out level. 

A fresh wave of global risk-aversion trade boosted demand for traditional safe-haven assets and helped the precious metal to break through the very important 200-day SMA strong hurdle. The US President Donald Trump ordered to strike a Syrian airbase, which was used to launch deadly chemical weapons on civilians, and spooked global financial markets.

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The greenback, however, remained supported by incoming US economic data (ADP report and Thursday's weekly jobless claims), which continued pointing to the underlying strength in the US labor market. The key US Dollar has managed to recover early Asian dip and capped further up-move for the dollar-denominated yellow metal. 

Investors, however, remained wary of the Trump/Xi Jinping summit, where an adverse outcome might trigger a fresh bout of volatility in global financial markets and remains supportive for the metal's safe-haven appeal, eventually limiting any further downslide. 

On the economic data front, today's monthly jobs report from the US (NFP) would drive Fed rate-hike expectations and provide some fresh directional impetus for the non-yielding metal. 

Technical levels to watch

Currently trading around $1263 level, any further retracement below $1260 level is likely to find support near $1256-55 area below which the metal seems to break below $1250 level and head back towards $1242 support area. 

On the upside, momentum above session high resistance near $1269 level is likely to get extended towards $1275 horizontal resistance before the metal eventually aims towards its next resistance near $1283 region.