Gold has shown a massive recovery after hitting low of $1266.80 on Friday. US economy has added 263000 jobs in Apr compared to forecast of 181K and unemployment declined sharply from 3.8% to 3.6%. USD Index jumped till 98.10 but started to decline on slight weakness in average hourly earnings which came at 0.2% compared to estimate of 0.3%.It hits low of 97.41 and any break below 97.40 (20- day MA) confirms further weakness. The yellow metal hits high of $1285.73 and is currently trading around $1282.35.
On the lower side, near term support is around $1278 and any violation below will drag the yellow metal down till $1270/$1266. Any break below $1266 confirms bearish continuation.
The near term resistance is around $1286 and any break above targets $1290 (55- day EMA)/$1296/$1300.
It is good to buy on dips around $1278-79 with SL around $1273 for the TP of $1290.
