Gold tumbles further, $1,250 on sight

The ounce troy of the precious metal is accelerating its decline today, now testing fresh lows in the $1,2550/50 band.

Gold lower on USD-buying, Fed

Bullion is intensifying its downside today, trading in fresh 4-month lows in the mid-$1,200s in response to a solid performance of the greenback after recent releases in the US calendar.

Furthermore, increasing expectations of a Fed’s rate hike by year-end keep fuelling the demand for the buck and thus undermining any attempt of recovery in the USD-denominated assets.

The US Dollar Index, which tracks the greenback vs. its major competitors, remains on a firm fashion, advancing to 3-month highs in the proximity of the key resistance area of 96.50.

Gold key levels

As of writing Gold is losing 0.87% at $1,257.55 and a breach of $1,219.05 (50% Fibo retracement of the 2016 up move) would open the door to $1,199.00 (low May.31) and finally $1,182.27 (38.2% Fibo retracement of the 2016 up move). On the other hand, the initial hurdle is located at $1,313.04 (100-day sma) followed by $1,327.61 (55-day sma) and then $1,344.45 (high Sep.23).