Gold re-takes $ 1370, despite positive equities

Gold stalled its post-NFP bullish run just ahead of 1375 and dropped sharply lower, before recovering some ground to now trade around 1370 region.

Gold re-takes $ 1370 mark

Currently, gold trades +0.18% higher at $ 1369, having posted day’s high at 1375.06 and day’s low at 1363.08. Gold prices keep its post-NFP upbeat momentum intact on the back of underlying Brexit uncertainty, despite the US employment numbers coming in way above estimates and adding to further signs of strength in the US economic recovery.

However, the recovery from daily lows appears to lack follow-through as the persisting risk-on rally in the US equities, following upbeat US jobs report, weigh on gold’s safe-haven appeal.

Looking ahead, gold prices are expected to remain underpinned ahead of the Chinese macro updates and US retail sales and PPI data due later this week.  While a string of Fed speaks and the BOE policy decision will be closely watched for fresh moves in the bullion.

Gold Technical Levels                                   

The metal has an immediate resistance at 1375.17 (Jul 6 High) and 1380 (round number). Meanwhile, the support stands at 1360 below which doors could open for 1350.77 (Jul 7 Low).