Gold holds at 4-week tops amid increased flight to safety

Having reached fresh four-week highs in early trades this Monday, gold prices retreated and now consolidate in a tight range well above $ 1270 mark.

Gold supported amid risk-off

Currently, gold now trades +0.05% higher at 1274.50, reverting towards fresh four-week highs printed at 1278.45 earlier today. The bullion attempted a minor correction this session, although found renewed bids amid increased demand for safe-havens as risk-off remains in full swing after weekend’s horrid Orlando bombings and ahead of the Fed and BOJ interest rates decision.

In times of uncertainty and panic in the markets, investors look to protect their capital and hence, flock to safe-havens such as gold. The traditional safe haven booked a 2.8% weekly gain, on top of last week's 2.2% rebound and lost sight of three-month lows struck just above $1,200 on May 30.

Next in focus for the bullion this week remains the Fed policy outcome, and the upside in the metal is expected to find further traction as the odds of a hike are virtually zero. Moreover, Brexit concerns are also likely to keep gold’s safe-haven appeal intact.

Gold Technical Levels                                   

The metal has an immediate resistance at 1280 (May 18 High) and 1285 (round number). Meanwhile, the support stands at 1270 (round figure) below which doors could open for 1264.52 (5-DMA).