Gold near two-month lows, inching closer to $1300 handle

Having posted its first monthly loss since May, Gold maintained its bearish tone and is currently trading close to Wednesday's two-month lows. 

On Wednesday, the precious metal dropped to hit a fresh post-Brexit low after better-than-expected ADP report raised expectations of yet another strong headline NFP print. Upbeat US economic data increases prospects of an eventual Fed rate-hike action, which is an important factor supporting the prevalent greenback strength, as measured by the overall US Dollar Index, and weighing on dollar-denominated commodities - like gold.

However, the Fed action remains dependent on the incoming US economic data and hence, Friday's NFP release would be an important factor for the central bank's monetary policy stance at its meeting during the latter half of the month, which would eventually determine the near-term trajectory for the yellow metal.

Technical levels to watch

Immediate support on the downside is pegged at $1300 round figure mark closely followed by 100-day SMA support near $1296-95 region, which if broken should open room for continuation of the commodity's near-term corrective move. 

On the upside, any recovery attempt might now confront immediate resistance around $1315 region above which the metal is likely to extend the bounce towards $1325-30 strong resistance zone.