Gold looks downwards, $1,200 back on the radar

The ounce troy of the precious metal is struggling for direction on Monday, now hovering over $1,210 after briefly dropping to $1,204 earlier in the session.

Gold under pressure on USD-buying

Bullion is extending the offered bias for the second session in a row so far today, although the broader picture tells us the yellow metal remains well entrenched into the bearish territory and it has been losing ground uninterruptedly (on a weekly basis) since June 6.

The pick up in the demand for the buck has been weighing on the safe haven metal since Friday, especially after the positive results from the US labour market for the month of June.

The solid pace of the US labour market left the door open for further tightening by the Federal Reserve at some point in H2, with December being the so far most likely candidate.

Ahead in the week, Yellen’s testimonies will put the buck in centre stage ahead of Friday’s inflation figures tracked by the CPI and June’s retail sales.

Gold key levels

As of writing Gold is losing 0.01% at $1,209.64 and a breakdown of $1,204.40 (low Jul.10) would expose $1,196.20 (low Mar.10) and finally $1,185.60 (low Jan.26). On the other hand, the next resistance emerges at $1,229.53 (10-day sma) followed by $1,230.69 (200-day sma) and then $1,243.24 (21-day sma).