Gold drops to lows near $1,270

By FXStreet The troy ounce of the precious metal is trading on a negative fashion on Monday, coming down to test the vicinity of $1,270, or daily lows.

Gold lower on USD-strength

The renewed bid tone surrounding the greenback is pushing the yellow metal to the $1,275/70 band today, extending the leg lower after recent 2016 tops just above the $1,300 handle (May 2).

The US dollar has regained its shine at the beginning of the week as market participants have perceived as positive last Friday’s Payrolls figures despite disappointing forecasts initially.

Furthermore, comments by FOMC’s Dudley arguing that two rate hikes this year seem ‘appropriate’ have also lent extra support to USD, undermining any bullish attempt in the metal.

Gold key levels

As of writing Gold is losing 1.56% at $1,273.55 facing the next support at $1,270.80 (low May 5) ahead of $1,248.55 (55-day sma) and then $1,209.20 (low Apr.1). On the flip side, a breakout of $1,304.40 (2016 high May 2) would aim for $1,322.10 (high Aug. 8 2014) and finally $1,343.70 (high Jul.10 2014).
For more information, read our latest forex news. …read more

Source:: FX Street