Gold tumbles to lows in sub-$1,280 levels

The demand for the precious metal continues to fade on Wednesday, now dragging the ounce troy to the area of daily troughs below $1,280.

Gold weaker as USD picks up

The renewed better tone surrounding the greenback has been collaborating with today’s correction lower of the yellow metal, while the absence of headlines regarding geopolitical risks seem to have alleviated some upside pressure as well.

Recall that escalating tensions in the Middle East and between the US and North Korea have been sustaining the upside momentum in Bullion as of late.

In addition, the upcoming French elections (Sunday) remain poised as a potential source for safe haven demand, especially if vote intentions of far-right candidate Marine Le Pen gain traction ahead of the event.

Gold key levels

As of writing Gold is losing 1.17% at $1,279.00 and a break below $1,273.80 (low Apr.12) would open the door to $1,253.27 (200-day sma) and then $1,248.20 (low Apr.10). On the flip side, the next up barrier aligns at 1,294.40 (high Apr.18) seconded by $1,297.40 (2017 high Apr.17) and finally $1,318.60 (high Nov.9 2016).