$1,105 level is required for gold to re-establish an upward bias - Video

This week, gold was trying to recover after hitting a 3-month low on Friday, hurt by a better-than-expected U.S. jobs report.

On Monday the metal ended the U.S. day session near steady in the cash market and slightly up in the futures market.

Peter Hug, the global director for Kitco Metals said in an interview that the unexpectedly strong data "generated heavy selling in the metals complex taking $25 off the value of gold within minutes. Gold finally found buying interest at the $1,087 support band and on [Monday] is seeing some bargain hunting buying."

"The employment number was seen as a guarantee that the Fed would move in December, but we remain outside of that camp," he said and explained that the primary issue remains deflation. In his opinion, until growth prospects improve in Europe and the Far East, he suspects the U.S. Federal Reserve will remain on hold.

"The technical damage is severe and a break above the $1,105 level is required to re-establish an upward bias," he said. 

And it seems gold is now heading towards this level, as December Comex gold was last seen at $1,092.70 an ounce, up 0.43%.

December Comex silver last traded at $14.485, up 0.5%.