Gold up smalls below $1,250, Fedspeak eyed

Pablo Piovano FXStreet

The troy ounce of the precious metal has managed to bounce of multi-week lows and is now trading slightly into the positive territory although still below the key $1,250 area.

Gold attention to Fed speakers

Bullion exchanged gains with losses as of late following mixed messages from Fed speakers.

In fact, NY Fed W.Dudley said on Monday he expects inflation to pick up faster pace. On the opposite side, recent comments by Chicago Fed C.Evans were tilted to a more gradual climb of inflation while he suggested that another rate hike should wait until December, allowing the Fed to assess further data.

The yellow metal is also deriving some support today from the renewed offered bias around the greenback, which is forcing the US Dollar Index to surrender part of Monday’s gains and test the vicinity of the 97.00 neighbourhood.

Ahead in the session, Boston Fed E.Rosengren (2019 voter, hawkish), Vice Chair S.Fischer (permanent voter, centrist) and Dallas Fed R.Kaplan (voter, hawkish) are all due to speak.

Gold key levels

As of writing Gold is advancing 0.09% at $1,247.77 and a breakout of $1,249.53 (100-day sma) would expose $1,256.55 (50% Fibo of the May-Jun rally) and finally $1,261.86 (55-day sma). On the other hand, the initial down barrier emerges at $1,244.30 (low Jun.19) seconded by $1,236.86 (200-day sma) and then $1,234.24 (76.4% Fibo of the May-June rally).

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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