Gold tripping stops in early Asia catching a bid to prior session's low

Gold was moving in the opposite direction overnight of what might be expected usually due to the inverse relationship that it normally has with the US dollar. However, risks sentiment is modest and the precious metal is less attractive in an environment where the Fed could still continue to hike interest rates, numbing down the appeal of the non-yielding safe haven. 

The weight of the bears from overnight was too much for illiquid early Asia and the price has extended to the downside through stops between $1,266.00 and $1,262.50. The price met $1,256 the low on the move before it was moving back in on $1,262 again.

What does the ADP employment result mean for nonfarm payrolls? - Nomura

The dollar was under pressure at the start of the US session and dropped further ahead of the nonfarm payrolls data on Friday when the ADP report missed expectations. The ADP employment report indicated that private sector employment increased by 178k in July vs the consensus of 190k. However, in respect to gold, it should be supported on weakness in the greenback and the downside should be limited, especially on less positive sentiment for the US economy. 

US jobs: Conviction that we are at full employment remains relatively high – Goldman Sachs

Gold levels

Key psychological supports come in between $1,250-$1,240 and on the wide to the upside, the key level is $1,300. In the near term, recoveries through this resistance at double bottom session lows, $1,268.40 and $1,270 protects 14th June highs of $1,280.40. To the downside, on further daily bearish closes, the 50 dma is located at $1,251 at a potentially strong support area.