Gold hits fresh highs near $ 1355 amid USD weakness

Gold prices remain strongly bid in early Europe, extending its post-NFP recovery into a third day today as the US dollar continues to lose ground across the board.

Gold trades above majors DMAs

Currently, gold jumps +0.94% to 1354.47, testing session tops previously posted at 1355.34. Gold shot higher this session as the US dollar extended the sell-off versus its major competitors. The greenback remains deep in the red on the back of heavy losses seen in the US treasury yields across the curve, which raise doubts over the Fed rate hike prospects for this year. The USD index drops -0.35% to 95.72 levels.

Moreover, a renewed bout of risk-aversion hit the markets after the Japanese stocks fell back into losses also bolstered the safe-haven demand for the yellow metal. Looking ahead, the broad market sentiment will continue to have a major influence on gold, while the USD price-action will remain the main driver for the metal ahead of the US JOLTS job openings data.

Gold Technical Levels                                   

The metal has an immediate resistance at 1360 (round figure) and 1364.70 (Aug 5 high). Meanwhile, the support stands at 1345 (5-DMA) below which doors could open for 1338 (20-DMA).