Gold finds support below $1,260 ahead of US data

The ounce troy of the precious metal keeps the weekly upside well and sound so far today, currently testing the $1,260/65 band ahead of US CPI figures.

Gold now looks to US releases

The yellow metal is extending its rebound from the $1,250 area, briefly testing highs around $1,270 although easing some ground soon afterwards.

Anyway, Bullion remains underpinned by the (temporary?) offered bias around the greenback as market participants continue to cash up recent strong gains following lacklustre results from the US docket.

Additionally, expectations of a Fed’s rate hike by year-end continue to lend support to the broader view of a stronger dollar in the next periods, capping occasional bullish attempts in the metal.

Later in the NA session, US inflation figures measured by the CPI are due seconded by the NAHB index and TIC Flows.

Gold key levels

As of writing Gold is gaining 0.60% at $1,264.15 and a breakout of at $1,271.07 (200-day sma) would expose $1,312.86 (55-day sma) and then $1,344.45 (high Sep.23). On the other hand, the immediate support lines up at $1,249.50 (low Oct.5) followed by $1,219.05 (50% Fibo retracement of the 2016 up move) and finally $1,199.00 (low May.31).