Gold stays near $1,320/oz, or session lows
- The yellow metal remains under pressure near $1,320/0z.
- The ounce troy of Gold navigates the area of 3-week lows.
- Higher USD, US yields keep the metal under pressure.
The solid performance of the greenback has forced the ounce troy of the yellow metal to recede and trade in the vicinity of $1,320, or new multi-week lows.
Gold remains under pressure
Bullion remains fragile so far today, looking to consolidate in the lower bound of the range near $1,320 following the drop from last week’s tops in the proximity of $1,360.
Yields of the key US 10-year reference reaching and surpassing the psychological 3.0% handle for the first time since 2014 plus solid performance of the buck as of late have prompted a sell off in the safe haven metal, along with easing geopolitical concerns and diminishing odds for a US-China trade war.
Looking ahead, the precious metal is expected to remain under further pressure, as the ECB is seen delivering a dovish message at tomorrow’s meeting, thus supporting a potential upside in the buck.
In addition, market participants have now shifted their focus back to monetary policy and the debate between three or four hikes this year, also undermining any attempt of Gold to regain ground lost.
Gold key levels
As of writing Gold is down 0.48% at $1,324.08 and a breakdown of $1,320.59 (low Apr.6) would expose $1,307.29 (low Mar.20) and then $1,303.26 (200-day sma). On the upside, the next hurdle lines up at $1,337.69 (21-day sma) seconded by $1,355.67 (high Apr.18) and finally $1,356.86 Mar.27).
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.
