Gold probing daily tops around $1,235/oz

Prices for the precious metal remains on the rise on Tuesday, currently slightly off session highs and testing the key 200-week sma around $1,235 per ounce troy.

Gold stronger on USD-selling

The troy ounce of the yellow metal is clinching its fifth cosecutiuve session with gains so far today, always propped up by the persistent selling bias around the greenback.

In fact, tracked by the US Dollar Index (DXY), the buck has plummeted to fresh 6-month lows in the low-98.00s after news posted by Washington Post cited President Trump shared key information with the Russian foreign ministry and ambassador at a meeting last week.

In addition, Gold is deriving extra support as market participants have scaled back its expectations of a rate hike by the Federal Reserve at the June meeting. Currently, the probability of that scenario is just below 74%, according to CME Group’s FedWatch tool.

In the meantime, Bullion is prolonging the bounce off 2-month lows in the $1,215 region seen last Tuesday, testing the key area around $1,230/35 – where is located the 200-week sma and the 23.6% Fibo retracement of the April-May drop.

Gold key levels

As of writing Gold is gaining 0.44% at $1,235.40 and a break above 1,244.96 (200-day sma) would expose $1,246.93 (55-day sma) and finally $1,255.85 (50% Fibo of the April-May drop). On the other hand, the next down barrier lines up at $1,224.40 (low May 12) seconded by $1,216.90 (low May 11) and then $1,214.30 (low May 9).