Gold bounces off lows amidst weaker USD

The ounce troy of the precious metal is trading in a tight range on Friday, currently posting marginal losses around the $1,250 area.

Gold faces weekly resistance at $1,265/oz

Prices for the yellow metal are advancing for the second week in a row so far today, although the rally from May lows around $1,214 seems to have run out of vigour around $1,265, yesterday’s peaks.

Bullion has been gathering traction on the back of a sharp sell off in the buck in response to heightened political risks following the latest Trump-FBI-Russia controversy. Additionally, renewed geopolitical jitters around US-North Korea are poised to give support to the yellow metal.

In addition, bets for a Fed’s rate hike at the June meeting have lost momentum in recent sessions, all sustaining further the recent ascent in Gold prices.

Gold key levels

As of writing Gold is losing 0.01% at $1,252.76 and a break below $1,246.04 (38.2% Fibo of the April-May drop) would aim for $1,243.68 (200-day sma) and then $1,233.91 (23.6% Fibo of the April-May drop). On the other hand, the next up barrier is located at 1,265.00 (high May 18) seconded by $1,272.40 (high May 1) and finally $1,277.79 (76.4% Fibo of the April-May drop).

 

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