Gold recedes from multi-month tops near $1,370/oz

Pablo Piovano FXStreet

- Bullion retreats from highs around $1,370/oz.

- USD weakness remains the sole driver of the upside.

- Focus on Trump’s speech at Davos.

The upbeat sentiment around the yellow metal stays unabated so far this week, with the ounce troy hovering over the $1,370 area, or multi-month tops.

Gold gains capped just below $1,370

The increasing selling pressure around the greenback has been the sole supporter of the sharp advance in the precious metal, which already gained more than 10% since December’s lows around $1,230/oz.

Bullion-buyers rushed this week particularly in response to comments by US Treasury Secretary S.Mnuchin on Wednesday, who favoured a weaker USD and motivated another wave of selling orders in the buck and thus an extra boost to the USD-denominated space.

Gold key levels

As of writing Gold is up 0.06% at $1,357.10 facing the next up barrier at $1,366.13 (2018 high Jan.25) seconded by $1,367.81 (high Aug.2 2016) and then $1,375.30 (high Jul.6 2016). On the other hand, a breakdown of $1,339.80 (10-day sma) would open the door to $1,325.87 (21-day sma) and finally $1,324.35 (low Jan.18).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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