Gold Drops to Lows Near $1,270
The troy ounce of the precious metal is trading on a negative fashion on
Monday, coming down to test the vicinity of $1,270, or daily lows.
Gold lower on USD-strength
The
renewed bid tone surrounding the greenback is pushing the yellow metal
to the $1,275/70 band today, extending the leg lower after recent 2016
tops just above the $1,300 handle (May 2).
The US dollar has
regained its shine at the beginning of the week as market participants
have perceived as positive last Friday’s Payrolls figures despite
disappointing forecasts initially.
Furthermore, comments by
FOMC’s Dudley arguing that two rate hikes this year seem ‘appropriate’
have also lent extra support to USD, undermining any bullish attempt in
the metal.
Gold key levels
As of writing Gold
is losing 1.56% at $1,273.55 facing the next support at $1,270.80 (low
May 5) ahead of $1,248.55 (55-day sma) and then $1,209.20 (low Apr.1).
On the flip side, a breakout of $1,304.40 (2016 high May 2) would aim
for $1,322.10 (high Aug. 8 2014) and finally $1,343.70 (high Jul.10
2014).
