Gold Stuck Below $4200 as Markets Await NFP Report

Gold prices remain stable below $4,200 as market participants await the upcoming Non-Farm Payrolls (NFP) report. The precious metal has shown some signs of improvement in its near-term chart, but the rebound from Monday's sharp selloff lacks conviction.

The hourly chart shows that gold has managed to climb back above its 100-hour moving average at around $4,164, which is a modest positive for buyers. However, this level remains a key test on the chart, followed by the 200-hour moving average near $4,235 and the $4,240 level, which was previously a support level.

Looking at the daily chart, gold remains below its 61.8 Fib retracement around $4,241 and the 100-day moving average near $4,279. The recent lows near $4,100 continue to provide a major line in the sand with the psychological $4,000 level sitting below that.

The upcoming NFP report may have a significant impact on gold prices. A softer report could give gold buyers more room to build on the technical improvement, but if the non-farm payrolls and wage numbers reignite the selloff in Treasuries, the recovery below $4,200 may prove difficult to sustain.

With 10-year Treasury yields having touched 5.34% this week before easing back, the reaction in the bond market may ultimately matter as much for gold as the payrolls number itself.