Gold off highs but downside seems limited amid renewed N. Korean fears

Gold built on Friday's sharp recovery move from two-month lows and climbed to its highest level in more than a week at the start of a new trading week.

Currently trading around the $1281 region, off session tops touched in the past hour, renewed concerns over N. Korea's nuclear ambitions stoked safe-haven demand on Monday and benefitted the precious metal.

Moreover, a modest retracement in the US Dollar, from 12-week highs set last week, was also seen lending some support to the dollar-denominated commodities and lifted the yellow metal to an intraday high level of $1285.

However, Friday's upbeat wage growth data from the latest US monthly jobs report reinforced prospects for additional Fed rate hike move in December. Hence, the prevalent positive tone around the US Treasury bond yields kept putting pressure on the non-yielding bullion and capped further up-move. 

With the US markets closed in observance of Columbus Day, broader market risk sentiment would remain an exclusive driver of the commodity's move on Monday.

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Technical levels to watch

Immediate support is now pegged near $1276 level and is followed by supports at 100-day SMA near the $1273 region and $1267 level.

On the upside, bulls would be eyeing for a follow through buying interest beyond $1285 level, above which the metal could aim to test $1290 intermediate hurdle ahead of the key $1300 round figure mark.