Gold off lows, back around $1,230

The firm tone around the greenback continues to weigh on the demand for the precious metal during the first half of the week.

Gold weaker on rate hike bets

After bottoming out around $1,228 earlier in the session, the ounce troy of the yellow metal has managed to regain the $1,230 area and beyond, although the broader picture still looks bearish.

In fact, Bullion is poised to remain under pressure in light of upcoming Fedspeak, Markit’s flash PMIs and tomorrow’s FOMC minutes.

It is worth mentioning that the demand for the greenback found extra legs in response to overnight comments by Philly Fed P.Harker (he will speak again later in the NA session along with members Kashkari and Williams), who opened further the door for a rate hike by the Federal Reserve at its March meeting.

The US Dollar Index – which tracks the buck vs. its main rivals – continues to consolidate its recent break above the 101.00 handle, posting fresh multi-day tops, all boosted by Harker’s comments.

Gold key levels

As of writing Gold is retreating 0.60% at $1,230.65 and a breakdown of $1,217.30 (low Feb.15) would expose $1,210.67 (100-day sma) and finally $1,185.60 (low Jan.26). On the flip side, the next up barrier is located at $1,241.20 (high Feb.17) followed by $1,243.90 (high Feb.8) and then $1,260.62 (200-day sma).