Gold inter-markets: awaits Fed decision and NFP for a firm near-term direction

Gold extended its recovery move from Friday's two-week lows and is now building on to its strength back above $1200 psychological mark.

Deteriorating investors' risk-appetite in wake of the US President Donald Trump's executive order on Friday, imposing a 90-day ban on travelers from seven Islamic countries, has been the key factor driving flows towards traditional safe-haven assets, including Gold. Recent rebound in the Volatility Index (VIX), leading to a corrective slide in the US equity markets, has been indicative of the prevalent risk-off mood. 

Meanwhile, broad based US Dollar weakness, as depicted by an offered tone around the USD/JPY pair, is further benefitting dollar-denominated commodities and supportive of the metal's latest leg of up-move, which is now headed for its first weekly advance since September 2016.

Despite of the controversial executive order, provoking market uneasiness, the US treasury bond yields remained closer to recent highs and have been restricting additional flows towards the non-yielding yellow metal. One possible reason could be this week's important events, including the Fed monetary policy announcement and the keenly watched monthly jobs report from the US, which would help investors to determine the pace and timing of the next Fed rate-hike action and eventually hint on where prices for the metal could be headed in the near-term.