Gold eases from 3-1/2 month tops, still well bid above $1240 level

   •  Dismal US monthly jobs report exerts some heavy pressure on the USD.
   •  Investors remain convinced that the Fed will eventually cut interest rates.
   •  The prevailing risk-on mood seemed to be the only factor capping gains.

Gold picked up the pace during the early North-American session and jumped to fresh 3-1/2 month tops, around the $1345 region in the last hour.

The US Dollar tumbled across the board in reaction to the latest disappointment from the US monthly jobs data, coming in to show that the US economy added only 75K new jobs in May and provided a strong boost to the dollar-denominated commodity. 

The data reinforced market expectations for an eventual Fed rate cut by the end of this year, which was evident from a free fall in the US Treasury bond yields and further collaborated towards driving flows towards the non-yielding yellow metal. 

The positive momentum, however, lacked any strong follow-through amid the prevailing risk-on mood, as depicted by bullish trading sentiment around equity markets and which tends to dent the precious metal's perceived safe-haven status. 

Nevertheless, the commodity still seems poised to end the week with strong gains - also marking its third consecutive week of a positive move, and at current levels, is all set to record the highest weekly close at least since early April. 

Technical levels to watch