Gold posting gains near $1,260 albeit in a narrow range

After dropping to levels below $1,250 on Monday, the ounce troy of the precious metal has regained attention and is now approaching the $1,260 area.

Gold up on USD weakness

The yellow metal keeps the tight range so far today, posting gains for the first time after nine consecutive pullbacks following a renewed offered bias surrounding the US dollar.

Increasing expectations of a Fed’s rate hike by year-end have been weighing on the metal’s sentiment in recent weeks, prompting Bullion to deflate from late September tops beyond $1,340.

No news from yesterday’s FOMC minutes seems to have somewhat alleviated the optimism around the buck today, motivating the US Dollar Index to recede from 3-month tops beyond 98.00 the figure and giving some oxygen to the USD-denominated universe.

Gold key levels

As of writing Gold is gaining 0.45% at $1,259.75 and a surpass of $1,267.67 (200-day sma) would aim for $1,320.03 (55-day sma) and then $1,344.45 (high Sep.23). On the upside, the next support lines up at $1,249.70 (low Oct.7) followed by $1,219.05 (50% Fibo retracement of the 2016 up move) and finally $1,199.00 (low May.31).