Gold upside still capped around $1,200

Prices for the ounce troy of the precious metal are advancing around 1% at the beginning of the week, sending the metal to fresh tops just below the $1,200 mark.

Gold stronger on USD selling

The greenback remains on the defensive on Monday, prolonging the weakness seen during the second half of last week after the US Dollar Index (DXY) clinched fresh13-year tops beyond the 102.00 (Thursday).

In the meantime, investors continue to cash up part of the recent strong gains in the buck, helping the yellow metal and other USD-denominated assets to rebound from recent lows.

Furthermore, market participants remain wary of the upcoming risks events later in the week, namely the OPEC meeting (Wednesday), Non-farm Payrolls (Friday) and the Italian referendum (Sunday), all lending extra legs to the metal.

It is worth mentioning that Bullion dropped to the area of $1,170 during last week, levels last seen in February, all against the backdrop of a stronger dollar.

Gold key levels

As of writing Gold is gaining 0.90% at $1,189.00 and a surpass of $1,217.35 (high Nov.21) would expose $1,219.05 (50% Fibo retracement of the 2016 up move) and then $1,229.30 (high Nov.16). On the other hand, the next support aligns at $1,170.50 (low Nov.25) followed by $1,129.90 (78.6% Fibo retracement of the 2016 up move) and finally $1,073.70 (low Jan.14).

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