Gold wobbling above $1,290/oz
- Bullion navigates within a tight range above $1,290.
- Recent USD weakness behind the metal’s weekly up move.
- Strong resistance expected around $1,300/oz.
The ounce troy of the precious metal is meandering a very tight range during the second half of the week above the $1,290 level.
Gold firm on weaker USD
Bullion is struggling to extend gains for the third consecutive week so far, alternating gains with losses in the $1,290/95 band and staying close to last week’s tops in levels just below the psychological $1,300 handle.
Measured by the US Dollar Index (DXY), the buck accelerated the downside following the somewhat dovish tone from the FOMC minutes on Wednesday, all amidst the already bearish note in response to the rising uncertainty in the US political scenario.
It is worth mentioning that FOMC members remain concerned over the lack of upside traction in inflation, although further tightening by the Federal Reserve next month appears almost fully priced in by market participants, keeping the upside in the safe haven metal somewhat limited.
Gold key levels
As of writing Gold is down 0.02% at $1,291.92 and a breakout of $1,294.60 (high Nov.22) would expose $1,297.50 (high Nov.17) and then $1,308.40 (high Oct.18). On the other hand, the next support lines up at $1,284.77 (100-day sma) followed by $1,279.63 (21-day sma) and finally $1,274.10 (low Nov.11).