Gold finds support near $1,270, US data eyed

The ounce troy of the precious metal is slightly lower on Wednesday, looking to extend the bounce off daily lows in the $1,270 area.

Gold upside capped near $1,280

The yellow metal is fading part of yesterday’s advance, so far managing to keep the trade around the key 200-day sma at $1,275 although gains appear capped near daily highs in the proximity of $1,280.

The now softer tone in the greenback has helped Bullion to clinch 3-week peaks near $1,280 in early trade, although the up move seems to have lacked of follow through.

Anyway, Gold remains under pressure as expectations of a Fed’s rate hike by year-end continue to build up, with the probability of such an event at above 70% according to CME Group’s FedWatch tool.

USD will take centre stage later in the NA session in light of the releases of Markit’s Services PMI, New Home Sales, Goods Trade Balance and the weekly report on crude oil inventories by the EIA.

Gold key levels

As of writing Gold is losing 0.11% at $1,272.25 and a break below $1,249.50 (low Oct.5) would open the door to $1,219.05 (50% Fibo retracement of the 2016 up move) and finally $1,199.00 (low May.31). On the flip side, the next up barrier lines up at $1,277.15 (high Oct.26) followed by $1,306.58 (55-day sma) and then $1,316.15 (100-day sma).