Bullion is reverting yesterday’s up move and is now trading on the defensive around the $1,285 area.
Gold softer on USD-buying
The ounce troy of the precious metal is navigating the lower bound of the weekly range closer to the $1,280 handle, all amidst a pick up in the demand for the greenback.
In fact, the USD has resumed the upside in response to rising optimism over the likeliness of the Trump’s tax reform, particularly after the Senate approved late on Thursday the Republicans-backed budget.
The US Dollar Index, in the meantime, also stays supported by the likely announcement of higher rates by the Federal Reserve at the December 13 meeting. Currently, and according to CME Group’s FedWatch tool, the probability of such event is above 90%, based on Fed Funds futures prices.
Gold key levels
As of writing Gold is losing 0.39% at $1,284.92 and a breakdown of $1,278.60 (low Oct.18) would expose $1,262.80 (low Oct.6) and finally $1,260.15 (200-day sma). On the upside, the initial hurdle is located at $1,293.53 (high Oct.19) seconded by $1,301.34 (55-day sma) and then $1,308.40 (high Oct.16).
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