The ounce troy of the precious metal has managed to regain some traction at session lows in sub-$1,280 levels and is now testing the $1,285 area.
Gold weaker on USD-buying
The demand for the safe haven metal remains subdued so far this week, forcing Bullion to retreat for the third session in a row following Monday’s test of the vicinity of $1,310.
Gold stays depressed against the backdrop of a strong recovery in the buck, while expectations of extra tightening by the Federal Reserve keeps sustaining the up move in the US Dollar Index.
In addition, the likeliness that J.Taylor could succeed Chair J.Yellen at the Fed is also weighing on the yellow metal. It is worth mentioning that Taylor leans towards the hawkish side when comes to monetary policy, as opposed to the other candidate and FOMC member J.Powell.
Gold key levels
As of writing Gold is losing 0.11% at $1,284.83 and a breach of $1,278.60 (100-day sma) would allow a test of $1,262.80 (low Oct.6) and finally $1,259.24 (200-day sma). On the upside, the initial hurdle aligns at $1,300.66 (55-day sma) followed by $1,308.40 (high Oct.16) and finally $1,312.60 (50% Fibo of the September-October drop).
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