Gold retreats from 5-week tops, around $1,265/oz

The better tone around the greenback is weighing today on the demand for the safe haven metal, dragging the troy ounce to the $1,265 region.

Gold offered on USD-bids

After reaching fresh multi-week peaks around $1,270 per ounce, Bullion met some selling pressure today following a pick up in the demand for the greenback, with the US Dollar Index managing to regain the 97.00 mark and above for the time being.

Gold, in the meantime, seems to be stabilizing around the 61.8% Fibonacci retracement of the April-May drop in the $1,265/oz region, vigilant on the potential Fed move at its meeting later in the month.

In fact, according to CME Group’s FedWatch tool, the probability of a rate hike this month is just below 89% from nearly 88% a week ago and 67.6% from a month ago.

Later in the NA session, USD should remain in centre stage in light of the ADP report, the ISM Manufacturing and the speech by FOMC’s J.Powell (permanent voter, centrist).

Gold key levels

As of writing Gold is retreating 0.51% at $1,265.53 and a breakdown of $1,258.40 (low May 30) would aim for $1,256.52 (55-day sma) and then $1,255.85 (50% Fibo of the April-May drop). On the upside, the next hurdle is located at 1,273.95 (high May 31) seconded by $1,277.79 (76.4% Fibo of the April-May drop) and finally $1,297.40 (2017 high Apr.17).