Gold is currently at $1,067.30 (+0.36%) still supported by short covering, however its outlook remains bearish as investors are preparing for the key U.S. jobs report due on Friday and a Federal Open Market Committee meeting later in December. Strong employment data would raise the probability of a rate hike and decrease demand for the non-interest-paying precious metal.

The dollar weakened slightly after disappointing manufacturing data; however bullion outlook is still driven by expectations of an imminent rate hike in the U.S.