Gold struggles near 3-week tops, Fedspeak on sight

Pablo Piovano FXStreet

The troy ounce of the precious metal is wobbling around fresh multi-week tops above $1,230 on Tuesday ahead of key Fed speakers.

Gold focus on Fed speakers

Bullion is looking to extend its advance for the fourth consecutive session today, always against the backdrop of an increasing selling pressure around the US dollar. In fact, in terms of the US Dollar Index, the buck has retreated to sub-100.00 levels for the first time since early February.

The yellow metal has gathered extra traction since the disappointing FOMC meeting last Wednesday, despite the Federal Reserve raised the Fed Funds rate by 25 bp. The Fed, however, failed to signal faster rate hikes in the next months, sticking to the gradual fashion and thus triggering a sharp leg lower in the buck.

Later in the session, the USD should take centre stage in light of speeches by Kansas City Fed E.George (2019 voter, hawkish) and Cleveland Fed L.Mester (2018 voter, hawkish).

Gold key levels

As of writing Gold is losing 0.04% at $1,233.55 facing the next support at $1,221.76 (38.2% of February-March drop) ahead of $1,218.00 (low Mar.16) and finally $1,216.11 (55-day sma). On the other hand, a breakout of $1,237.54 (61.8% of February-March drop) would expose $1,243.90 (high Feb.8) and then $1,263.10 (high Feb.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.

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