Gold in red below $1,240.00 ahead of FOMC

The ounce troy of the precious metal is trading on the defensive on Monday, meandering within a narrow range and posting marginal losses around $1,235.

Gold cautious ahead of FOMC minutes

Prices for the black gold remains in a tight range today against a backdrop of scarce activity following the President’s Day holiday in the US, while cautiousness is expected to grow bigger as we get closer to the FOMC minutes, to be released on Wednesday.

Bullion stays under pressure in the meantime, as recent Fedspeak and testimonies by Chief Janet Yellen have boosted expectations of a rate hike by the Federal Reserve as soon as at the March meeting.

Adding to the offered bias around the yellow metal, the US Dollar Index remains in a firm note for the third week in a row so far today, always propped up by supportive Fedspeak and auspicious results from the US docket.

Gold key levels

As of writing Gold is retreating 0.19% at $1,236.95 and a breakdown of $1,217.30 (low Feb.15) would expose $1,211.02 (100-day sma) and finally $1,185.60 (low Jan.26). On the flip side, the next up barrier is located at $1,241.20 (high Feb.17) followed by $1,243.90 (high Feb.8) and then $1,260.85 (200-day sma).