Gold flirting with lows, near $1275 level

Haresh Menghani FXStreet

Gold maintained its offered tone through early European session and slipped further below $1280 level, to its lowest level since Oct. 6.

The precious metal remained on the back-foot at the start of a new trading week and was being weighed down by persistent US Dollar buying interest. Optimism over the US President Donald Trump's tax reforms underpinned the greenback demand and has been one of the key factors weighing on dollar-denominated commodities - like gold.

Adding to this, the prevalent risk-on environment, as investors cheered the Japanese snap election outcome, did little to support the yellow metal's safe-haven appeal and stall the slide to the $1275 region.

With an empty US economic docket, broader market risk sentiment and the USD price dynamics would remain key determinants of the metal's movement ahead of this week's key US macro data - durable goods orders data and advance Q3 GDP figures.

Technical levels to watch

Immediate support is pegged near $1270 area, below which the commodity is likely to test $1267 level ahead of 2-month lows support near the $1260 region.

On the upside, $1280 level now becomes immediate resistance, which if cleared could lift the metal back towards $1290-91 heavy supply zone.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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