Gold steady near $1,255/oz despite USD-weakness

Pablo Piovano FXStreet

The ounce troy of the precious metal is alternating gains with losses on Tuesday, hovering near $1,255 in spite of mounting selling pressure around the buck.

Gold weekly gains capped near $1,260

Bullion is retreating for the second straight session in spite of further weakness around the greenback. In fact, sellers are now dragging the US Dollar Index to test fresh YTD lows near 93.50, levels last seen in June 2016.

While the move in the buck lacks of a catalyst so far, US politics, the Russia-gate and heightened scepticism among investors on the potential next steps of the Federal Reserve in the next months seem to undermine any bullish attempt in USD.

The demand for the yellow safe haven, however, stays vigilant on the upcoming FOMC meeting on Wednesday, where market consensus expects the Fed to keep its monetary status quo unchanged. However, the wording in the statement could hint at the next potential moves by the Fed, particularly regarding interest rates and the balance sheet.

Gold key levels

As of writing Gold is losing 0.08% at $1,253.33 facing the next support at $1,249.30 (55-day sma) seconded by $1,240.21 (38.2% Fibo of June-July drop) and then $1,238.93 (10-day sma). On the upside, a break above $1,259.00 (high Jul.24) would expose $1,262.59 (61.8% Fibo of the June-July drop) and then $1,284.20 (high Jun.14).

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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