Gold hangs near 2-week lows ahead of NFP

   •  A modest USD retracement helps bounce off lows.
   •  Gains remain capped ahead of the key NFP report.

Gold pared some of its losses to 2-week lows and is now trying to stabilize around the $1325-24 region as investors keenly await the release of latest US jobs report. 

In absence of any fresh fundamental trigger, a modest US Dollar retracement, amid some repositioning trade ahead of today's key event risk, extended some support and helped the dollar-denominated commodity to bounce off lows. 

Further gains, however, remained capped amid a goodish rebound in the US Treasury bond yields, which tends to drive flows away from the non-yielding yellow metal. This coupled with some initial signs of stability across European markets, despite persistent worries about a potential US-China trade war, did little to revive the precious metal's safe-haven appeal and provide any additional boost to a modest recovery attempt. 

Today's key focus would remain on the keenly watched NFP report, which along with the Fed Chair Jerome Powell's scheduled speech might influence Fed rate hike expectations and eventually provide some fresh directional impetus. 

Technical levels to watch

A sustained weakness below $1320 level is likely to accelerate the slide towards 100-day support near the $1312 region, below which the commodity might turn vulnerable to test sub-$1300 level (200-day SMA). On the upside, a follow-through recovery move beyond $1326 level could lift the metal towards $1332-33 supply zone en-route $1340 strong barrier.