Gold drops to fresh multi-week lows near $1250 level

Gold came under some renewed selling pressure on Monday and fell to the lowest level in around four weeks during early European session.

A positive opening in the European equity markets, pointing to improving investors' appetite for riskier assets, was seen weighing on traditional safe-haven assets and has been the sole driver of the precious metal's latest leg of fall in the past hour or so.

This coupled last week's hawkish Fed decision, supporting a modest up-tick in the US Treasury bond yields and underpinning the US Dollar, further dented demand for the non-yielding commodity and collaborated to the slide to its lowest level since May 24.

• US Dollar firmer, eyes on 97.00

Investors now look forward to this week's speeches from various influential FOMC members, starting with the Chicago Fed President Charles Evans speech on Monday, for some fresh impetus amid absent major market moving economic releases.

Technical levels to watch

Below $1250 level, the metal is likely to find support at 100-day SMA near $1247 region, which if broken is likely to accelerate the slide further towards the very important 200-day SMA support near $1240-39 region.

On the flip side, any recovery move above $1253 level now seems to confront immediate strong resistance near $1255 region, above which a bout of short-covering could lift the commodity back towards $1262 horizontal resistance.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.