Gold bounces off lows, remains just below the maximum of 7 weeks

The gold reduced some of its initial losses to a minimum the session near the region of 1265 dollars and is maintained with only minor losses of just under the maximum of seven weeks played today.

Currently operates around an area of $ 1268-69, the precious metal gave gains last week of more than 1% as investors await a busy week of economic events/data, including the much-awaited NFP Friday.

A moderate recovery of the us Dollar against the minimum of 13 months, which tends to decrease the demand for commodities denominated in dollars, has maintained a control on the upward trajectory of the yellow metal. The reverse, however, proved to be of short duration in the midst of geopolitical tensions on the Korean peninsula, which supported the demand for safe haven commodities.

This, coupled with the political uncertainty of the united States and expectations of fading any further action of increasing the rate of the Edf in 2017 seems to be working to limit any correction corrective immediate to the metal.

On the other hand, the action of today’s price clearly seems to suggest the buying interest of the dive at the lower levels. Therefore, a clear break through the obstacle $ 1270, which leads to an extension of the fence of metal in the short term, it now seems a clear possibility.

Technical levels to watch

The time indicator above the level of $ 1270 should get extended towards the resistance horizontal $ 1279-80 in route to the next barrier $ 1284-85.

On the contrary, the weakness below the level of $ 1265 would make the metal vulnerable to extend the correction back towards the very important SMA 200-day support around the region of $ 1250 with some support intermediate near $ 1255-54.

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