Gold bounces off weekly lows, still in red ahead of NFP

   •  Reviving safe-haven demand helps bounce off lows.
   •  Stronger USD/US bond yields capping additional gains.
   •  Focus remains on the key US monthly jobs report.

Gold managed to pare some of its early losses to fresh weekly lows but held in negative territory through the mid-European session. 

A combination of diverging factors has failed to provide any meaningful impetus and has led to subdued/range-bound price action. The prevalent cautious sentiment around European equity markets was seen lending some support to the precious metal's safe-haven appeal and helped bounce off lows.

However, a follow-through US Dollar buying interest, supported by a goodish pickup in the US Treasury bond yields might continue to keep a lid on any further meaningful up-move for dollar-denominated commodities - like gold. 

Investors' focus on Friday would remain glued to the keenly watched US monthly jobs report, which might influence Fed rate hike expectations and eventually provide some fresh impetus for the non-yielding yellow metal's near-term trajectory.

Technical levels to watch

Any follow-through recovery is likely to confront resistance near the $1326 region, above which the metal seems all set to surpass the $1332-33 intermediate hurdle and head towards $1342 supply zone.

On the flip side, $1316 level might continue to lend some immediate support, which if broken might turn the commodity vulnerable to aim back towards testing 100-day SMA support near the $1302-1300 region.