Gold traded higher overnight in a range of $1197.30 - $1204. It ticked down to its $1197.30 low during Asian time and into early European hours, as the dollar advanced (DX to 95.91).

The greenback was helped by weakness in the euro ($1.1520 - $1.1487) on some positioning ahead of the US Payroll report and some renewed jitters over Italian politics.

Later during European time, however, gold climbed to its $1204 high as the DX pulled back to 95.74 against some strength in the pound ($1.3005 - $1.3060) on reports that Brexit divorce deal is very close.

Weaker global stocks were a tailwind for gold as the NIKKEI fell 0.6%, China was still closed, European shares were off from 0.4% to 0.6%, and S&P futures were -0.1%. A modest dip in oil prices from near four-year highs (WTI from $74.70 - $74.30) weighed on stocks.

At 8:30 AM, the much awaited US Payroll Report was a mixed bag. The headline Non-Farm Payroll figure missed considerably (134k vs. exp. 180k), and markets (algorithmic trading) slammed S&P futures lower (-9 to 2898) and knocked the US 10-year yield down from 3.206% to 3.187%.

The DX tumbled to 95.70, and gold took out the overnight high to reach $1204.75. However, after a closer look, a more robust Report emerged: the last 2 months were revised up (+87k), Unemployment Rate dipped to 3.7% vs. exp. 3.8% (lowest since 1969), while Average Hourly Earnings were 0.3% as expected.

Also, many analysts pointed to the effects of Hurricane Florence as a mitigating factor for the lower payroll gain. As a result, markets gyrated wildly while participants digested the data, with gold trading in a choppy fashion between $1200 and $1204.75 as the DX ranged from 95.57 – 95.95....

Read more from our friends at Gold & Silver