Gold jumps to session tops near $1270

Haresh Menghani FXStreet

Gold attracted some fresh buying interest near $1265 region and snapped three consecutive days of losing streak amid prevalent risk-off environment.

Currently trading around $1270 region, testing session tops, investors leaped on to traditional safe-haven assets amid a fresh wave of global risk-aversion trade and helped the precious metal to reverse part of Friday's sharp losses to one-week low.

Adding to this, a mildly softer tone around the US Dollar further benefitted dollar-denominated commodities and collaborated to the yellow metal's up-move through early European session.

It, however, remains to be seen if the up-move is backed by any genuine buying or is solely led by short-covering ahead of Wednesday's FOMC decision and updated economic projections. Clues over the central bank's near-term monetary policy outlook would now act as the next catalyst determining near-term trajectory for the non-yielding commodity.

Technical levels to watch

A follow through buying interest beyond $1271 level has the potential to continue boosting the metal further towards $1274 intermediate resistance ahead of $1278-79 important hurdle. On the downside, $1266-65 area now seems to have emerged as immediate support, which if broken is likely to drag the commodity towards $1259 horizontal support en-route $1255 level.

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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