Gold rally finds resistance near $1,245/oz

The ounce troy of the precious metal is retreating for the first time after three consecutive advances on Wednesday, currently hovering over the $1,240 area.

Gold weaker on USD-buying

The moderate recovery in the greenback is prompting Bullion to deflate from yesterday’s fresh 3-week tops near $1,245 to the current vicinity of $1,240.

The US Dollar Index has finally managed to regain some attention after recording new YTD lows near 94.20 on Tuesday, levels last seen in September. Rising doubts among investors on the ability of the Federal Reserve to deliver another hike in H2 have been weighing on the buck in past session and helped the yellow metal to advance to multi-week peaks.

In addition, the US political scenario remains a source of uncertainty for the greenback in light of the repeated failure to pass the ‘Trumpcare’ bill, while the discussion over the long-waited tax reform still remains delayed.

Gold key levels

As of writing Gold is losing 0.25% at $1,238.68 facing the immediate support at $1,232.85 (21-day sma) seconded by $1,229.72 (200-day sma) and finally $1,204.00 (low Jul.10). On the upside, a breakout of $1,244.10 (high Jul.18) would expose $1,247.26 (55-day sma) and then $1,251.40 (50% Fibo of June-July drop).