Gold steadies above $1300, eyes payrolls data

Gold prices are trading in the sideways manner in Asia above $1300 levels as investors await the US non-farm payrolls report amid election-led uncertainty in the markets.

Poised for weekly gains

At the current price of $1303, the metal is trading well above the weekly opening price of $1278. The previous week's close stands at $1275.50. A $30 drop appears unlikely from the current level even if the US non-farm payrolls and wage growth numbers beat estimates by a wide margin.

This is because the US election uncertainty and the resulting risk-off tone in the global markets is likely to keep the bid tone around the yellow metal intact. Consequently, the metal appears on track for a weekly gain, although caution is still advised.

Gold Technical Levels

A break above $1307 (Nov 2 high) would open doors for $1311.90 (Sep 16 low), above which a major hurdle is noted at $1327.70 (Sep 30 high). On the other hand, failure to hold above $1300 could yield a corrective move to $1287.30 (previous day's low). Further losses could run into support at $1262 (Oct 28 high).