Gold weaker, $1,240/oz on sight

The troy ounce of the precious metal is extending its weekly downside, now testing lows in the $1,243 area.

Gold down on USD-buying

Prices for the yellow metal keep navigating the lower end of the recent range, finding some decent support around the 200-day sma near $1,230 while gains appear so far limited in the vicinity of $1,260.

Recent upbeat results from US GDP figures lent fresh oxygen to the buck and lifted the likeliness of further tightening by the Federal Reserve at some point by year-end, with the probability of such a scenario hovering over 50% according to CME Group’s FedWatch tool, based on Fed Funds futures prices.

However, the recent shift to a more hawkish stance from some G10 central bankers, as per speeches at the ECB Forum earlier in the week, prompt some caution at least amid USD-bulls, rendering pullbacks in Bullion as somewhat shallow.

Later in the NA session, the buck will be in centre stage once again in light of the releases of personal income/spending, PCE and the final print for June’s consumer sentiment.

Gold key levels

As of writing Gold is retreating 0.16% at $1,243.98 and a breakdown of $1,236.50 (low Jun.26) would expose $1,234.24 (76.4% Fibo of the May-Jun rally) and then $1,233.84 (200-day sma). On the upside, the next hurdle is located at $1,251.23 (100-day sma) seconded by $1,260.00 (high Jun.23) and finally $1,266.52 (38.2% Fibo of the May-Jun rally).