Gold aims to extend recovery ahead of NFP data

Gold price has resumed its upside trend after a pullback to near $1,700.00. Escalating Japan-North Korea tensions are turning the risk to the negative side.

After bumper US ADP data, positive NFP data could mean a next 75 bps rate hike in November. The gold index turned sideways after sensing demand around the critical support of $1,700.00. The precious metal is aiming to cross the $1,720.00 hurdle and will find its next barrier around $1,730.00.

Gold is holding its gains while the market sentiment is turning negative on escalating tensions between Japan and North Korea.

The option of announcing a third consecutive 75 bps rate hike by the Federal Reserve (Fed) is getting votes now. Earlier, the San Francisco Fed President Mary Daly said that inflation remains high.