Gold drops back below 5-DMA post-China PMI, NFP eyed

The minor-recovery attempts seen in gold over the last hour lost legs just below 20-DMA at $ 1219, following the release of disappointing China data, now sending the rate back near 5-DMA located at $ 1216.70.

Gold poised to test $ 1200 on better NFP report

Currently, gold drops -0.40% to $ 1214.85, unable to sustain the recovery near $ 1218.50 region.  Gold stalled recovery and instead accelerated declines after the Chinese manufacturing PMI data reported a big miss, underscoring demand concerns from the world’s top metal consumer, China.

Further, the yellow metal remains under pressure so far this session, as the US dollar extends its corrective rally on profit-taking ahead of the US labour market report. The rebound in the US treasury yields remain the underlying reason for the ongoing retreat in gold from three-month highs reached near $ 1230 a day before.

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1220 (round number) and 1225 (Nov 17 high). Meanwhile, the support stands at 1210 (round figure) below which doors could open for 1206.18 (100-DMA).