Gold tumbles to multi-day lows near $1,283, 21-day SMA
- The precious metal remains on the defensive near $1,283/oz.
- The better tone around the greenback keeps weighing on Gold.
- US Industrial Production, U-Mich index next of relevance.
The ounce troy of the yellow metal is extending the weekly downside and is now navigating new multi-day lows in the $1,283 area.
Gold looks to data, USD
The recent better tone in the greenback coupled with the important rebound in yields of the US 10-year note is forcing the yellow metal to trade in the lower bound of the 2019 sideline theme.
Low volatility in the global markets and a lost of momentum in the risk-off sentiment is also plotting against any meaningful rebound in the metal, which remains capped by the critical $1,300 milestone.
Looking ahead, investors will closely follow today’s releases in the US docket, including December Industrial Production figures, the preliminary gauge of Consumer Sentiment and speeches by FOMC’s Williams and Harker.
Gold key levels
As of writing Gold is losing 0.45% at $1,285.72 and a breakdown of $1,282.74 (21-day SMA) would expose $1,276.50 (2019 low Jan.3) and then $1,247.22 (200-day SMA). On the upside, the next hurdle comes in at $1,297.06 (high Jan.10) seconded by $1,298.54 (2019 high Jan.4) and finally $1,309.30 (monthly high Jun.14 2018).