Gold Sustaining Weakness Below $1250
Trading below $1250 mark, Gold extends its Thursday's reversal from
$1270 level and Friday's bounce above $1250 mark is being sold into.
The yellow metal has been losing shine on strong USD as investors cut their speculative USD bearish positions ahead of the US Federal Reserve's monetary policy meeting next week.
Might continue oscillating between $1240-50
From current levels, the metal seems to continue drifting lower before finding support at a short-term trend-channel formation on H1 chart, near $1241-40 area. Sustained weakness below $1240 support opens room for further weakness in the near-term.
On the upside, $1250 psychological mark now seems to attract fresh selling pressure. However, a sustained break-through $1250 resistance has the potential to trigger a spike towards its next major resistance near $1259-60.