Gold Retreats From Highs, Below $1,240
The ounce troy of the precious metal keeps the area of daily highs near
$1,240 on Monday following a continuous selling mood around the US
Gold cautious ahead of FOMC
Gold has managed to leave behind Friday’s troughs in sub-$1,230 levels today, although gains seem to be capped around the $1,240 area as market participants continue to factor in the FOMC and BoJ meetings due in the second half of the week.
Despite a rate hike by the Federal Reserve is off the table at this meeting, traders will closely follow the Fed’s statement looking for clues regarding a potential move at the June meeting.
Gold key levels
As of writing Gold is up 0.78% at $1,239.55 facing the next hurdle at $1,261.70 (high Apr.12) followed by $1,270.60 (high Apr.21) and finally $1,280.70 (2016 high Mar.11). On the downside, a breach of $1,224.50 (low Apr.14) would aim for $1,209.20 (low Apr.1) and then $1,193.60 (low Feb.16).