Gold rises to $1327, inching closer to NFP-led swing highs

Gold was seen building on to recovery gains from Friday's post-Brexit lows as weaker-than-expected headline NFP print eased worries of an imminent Fed rate-hike action in coming months.

Currently trading around $1327 level, the yellow metal is moving closer to weekly high level of $1330 touched on Friday in the aftermath of disappointing US monthly jobs report. Earlier on Friday, the commodity initially dropped close to 100-day SMA strong support before staging a short-covering rally. 

A follow through US Dollar selling pressure on Monday is seen benefitting dollar-denominated commodities and helping the precious metal to build on to its recovery move.

With US markets closed on Monday in observance of Labor Day, trading activity is likely to remain thin during US session ahead of Tuesday's RBA monetary policy decision during Asian session and US ISM non-manufacturing PMI later during NA session.

Technical levels to watch

On a sustained move above $1330, the commodity seems to head back towards $1338-40 horizontal resistance above which the recovery momentum is likely to get extended further towards the next major resistance near $1350 region.

Meanwhile, weakness below session low support near $1322-21 area should get extended towards $1315-12 support area before the metal eventually drops towards testing 100-day SMA strong support near $1300-1298 region.