Gold keeps lows near $1,220

The ounce troy of the precious metal has dropped to fresh multi-day lows near $1,220 on Monday.

Gold lower on risk-on trade

Growing sentiment towards the risk-associated assets has plotted against any continuation of Friday’s gains in the metal today, deflating to multi-day lows in the vicinity of $1,220.

A positive tone from the meeting between President D.Trump and PM S.Abe over the weekend has mitigated concerns over a potential belligerent tone in light of past comments by Trump on the loose monetary policy from the BoJ. However, none of the potential fears have materialized, turning instead to a cordial meeting where both Trump and Abe emphasized the need of strong trade links.

Traders’ focus will now shift to the upcoming testimonies by Fed J.Yellen  (Tuesday and Wednesday) and the release of January’s inflation figures in the US economy.

Gold key levels

As of writing Gold is retreating 1.02% at $1,223.15 and a breakdown of $1,220.00 (low Feb.13) would expose $1,215.26 (100-day sma) and finally $1,185.60 (low Jan.26). On the flip side, the next up barrier is located at $1,243.90 (high Feb.8) followed by $1,261.76 (200-day sma) and finally $1,318.60 (low Nov.9 2016).