XAU / USD climbs to nearly two-week highs, closer to $ 1,850

• Gold jumped to new two-week highs in reaction to disappointing NFP print titles.
• A modest rebound in US bond yields kept any further gains for the metal in check.
• Market optimism could further limit the rise in safe haven commodities.

The oro it reversed an early North American fall to the $ 1,833 region and rose to nearly two-week highs around the $ 1,848 region in the last hour.

The precious metal gained some traction and broke its daily consolidated trading range in reaction to a rather unimpressive monthly employment report in the United States. The head of the NFP showed that the US economy added 245,000 new jobs in November compared to 469,000 expected. In addition to this, the previous month’s reading was revised down to 610,000 from 638,000 previously reported.

The disappointment, to a greater extent, was offset by additional details, which revealed that the unemployment rate fell more than expected to 6.7% from 6.9% previously. This, coupled with a modest rally in US Treasury yields, provided much-needed respite for the US dollar. This, in turn, put some pressure on the non-yielding yellow metal.

USD bulls, however, stayed on the sidelines amid expectations of additional US fiscal stimulus and mounting bets for further monetary easing by the Fed. Lack of buying around the dollar it was seen as one of the key factors that extended some support and helped the dollar attract some buying on the lower dips.

Meanwhile, the latest optimism about the launch of a vaccine for the highly contagious disease coronavirus continued to support market optimism. The flow of risk appetite tends to undermine demand for traditional safe-haven assets and could help limit any significant gains for the XAU / USD, warranting some caution for bull traders.

Technical levels