Gold keeps Friday’s range intact, around $ 1121

FXStreet (Mumbai) - Gold price on Comex extends its side-trend in to the European morning and trades muted as markets still digest the recent US jobs report and reassess chances of Fed rate hike as early as next week.

Gold holds above 50-DMA

Currently, gold trades modestly flat at 1121, having posted a high at 1124 and a low at 1117.10. Gold prices continues to trade in a tight band and keeps its range seen on Friday intact as markets now await the upcoming macro releases from China to set the tone ahead of Fed meeting next week.

Moreover, rebounding European indices and US futures further boosted the risk sentiment, weighing on the safe-haven appeal of the yellow metal.

Chris Weston from IG noted, “US futures have pushed higher as a result of stability in Chinese markets and I would imagine we could see the probability of a September hike increase a touch when the fed funds futures open. Clarity is what the world wants and clarity was clearly what we didn’t get in Friday’s payrolls."

Meanwhile, nothing of relevance on the macro calendar that may impact gold prices while US remains closed on Labour Day celebrations.

Gold Technical Levels

The metal has an immediate resistance at 1123.60 (5-DMA) and 1127.56 (10-DMA) levels. Meanwhile, support stands at 1118.25 (50-DMA) below which doors could open for 1116.20 (Sept 4 Low) levels.

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