Gold navigates lows near $1,160

The ounce troy of the precious metal has resumed its downside today, dropping to lows in levels around $1,160, last seen in February.

Gold supported at $1,153

The demand for Bullion lifted the metal from yesterday’s multi-month lows near $1,150 to current levels, although it remains under heavy pressure in a context of a strong greenback and prospects of further tightening by the Federal Reserve in the next months (starting as soon as tomorrow).

In fact, the FOMC is expected to hike the Fed Funds by 25 bp at Wednesday’s meeting, although the focus of attention will likely be the potential rate path for the coming year (‘dot plot’). In this regard, rumours among investors are already signalling the Fed could hike twice during 2017.

In the meantime, the yellow metal is posting meagre gains during the first half of the week, so far enough to revert five consecutive weeks of losses since November peaks above the $1,300/oz mark (recorded in the early stages of the US elections results).

Gold key levels

As of writing Gold is losing 0.37% at $1,161.45 and a breach of 1,157.00 (low Dec.5) would aim for $1,129.90 (78.6% Fibo retracement of the 2016 up move) and finally $1,073.70 (low Jan.14). On the upside, the next hurdle is located at $1,180.55 (high Dec.8) ahead of $1,217.35 (high Nov.21) and then $1,219.05 (50% Fibo retracement of the 2016 up move).