Gold confined in a range below 200-DMA, NFP awaited

Gold maintained its neutral stance and has been confined within a narrow trading band below the very important 200-day SMA as investors look forward to the release of US monthly jobs report for fresh impetus.

Currently trading around $1255 level, the precious metal seesawed between tepid gains and minor losses, consolidating its recent sharp sell-off to a four-month low. A broadly stronger greenback, primarily led by a sharp sell-off in the GBP/USD major, is restricting any recovery for dollar-denominated commodities - like gold, while cautious investor sentiment, amid concerns of "hard Brexit", is supporting the metal's safe-haven appeal. These diverging factors have led to range-bound, directionless trading action around the yellow metal on Friday. 

Today's release of monthly jobs report from the US, which is traditionally know for generating substantial volatility across global financial market and hence, would be the next big trigger providing impetus for the commodity's near-term trajectory.

Technical levels to watch

On the upside, $1260 region (200-day SMA) remains immediate resistance, which if conquered is likely to boost the metal immediately towards $1268 horizontal resistance. Conversely, weakness below multi-month lows support near $1250 level is likely to turn the commodity vulnerable to extend its near-term downward trajectory and immediately slide to $1235 support.