Gold slumps to fresh 5-week lows below $ 1200, NFP - Key

Gold prices on Comex extend its week-long run of declines and remains on track to book second straight weekly loss, as global central bankers’ are tilting towards hawkish policy stance, with the latest one being the ECB.

Gold eyes 100-DMA support at $ 1195.86

Currently, gold drops -0.35% to $ 1198.75, having posted fresh 5-week lows at $ 1197 last hour. Gold makes minor-recovery attempts, although remains under heavy selling pressure, as markets are pricing in a better US NFP report, especially after surprising positive ADP jobs release, which will put a rubber stamp on a Fed rate hike as early as next week.

Moreover, higher treasury yields combined with a slightly hawkish policy outcome delivered by the ECB, weighed negatively on the non-interest bearing gold. The ECB policy decision indicated somewhat that the central bank could be heading towards the end of its current accommodative policy stance. 

Just a reason or two to short the 'March rate hike herd'

Comex Gold Technical Levels                                  

The metal has an immediate resistance at 1203.43 (daily pivot) and 1209.87 (5-DMA). Meanwhile, the support stands at 1195.86 (100-DMA) below which doors could open for 1190 (round number).