Gold recovers early lost ground to one-week lows, back near multi-week highs

Gold recovery majority of the early losses to one-week lows and refreshed session tops during early NA session, albeit retreated a bit thereafter.

A fresh bout of volatility, led by BoE monetary policy decision, benefitted the precious metal's safe-haven appeal and triggered the initial leg of recovery from lower level levels. This coupled with a dovish assessment of the BoE's quarterly inflation report provided an additional boost to the non-yielding metal.

However, a US Dollar uptick, further supported by weekly jobless claims data, kept a lid on the up-move for the dollar-denominated commodity - gold. Meanwhile, signs of stability in European equity markets, and possibilities of a flat to a positive opening in the US equity markets did little to provide any additional boost and continued capping the yellow metal just below 7-week highs touched earlier this week. 

Currently trading around $1266 region, the release of ISM non-manufacturing PMI from the US would now be looked upon to grab some short-term trading opportunities. However, the key focus would remain on Friday's official NFP data, which might help determine the next leg of directional move for the commodity.

Technical levels to watch

Immediate hurdle remains near $1269-70 region, which is followed by resistance near $1275 level (Tuesday's high). On the flip side, weakness back below $1261-60 region might now turn the metal vulnerable to break below $1257-56 region (session lows) towards testing 100-day SMA support near the $1252 region.