Gold within a tight range around $1,260

The ounce troy of the precious metal is trading within a sideline theme at the beginning of the week, currently around the $1,262.00 area.

Gold supported near $1,250

Bullion dropped to the vicinity of $1,250 area on Friday in response to the auspicious prints from the US labour market, with non-farm payrolls coming in at 222K, the jobless rate ticking lower to 4.3% and the critical average hourly earnings rising 2.5% in a year to July.

The demand for the yellow metal is trading on the defensive for the fourth consecutive session so far after being rejected from last week’s tops beyond $1,270.

Expectations of a Fed move at some point towards year-end seem to have resurfaced after the solid print from July’s payrolls, putting the demand for the safe haven metal under extra downside pressure.

Data wise today, all the attention should be on the speeches by St. Louis Fed J. Bullard (2019 voter, dovish) and N.Kashkari (voter, dovish).

Gold key levels

As of writing Gold is losing 0.15% at $1,262.65 facing the next support at ¢1,253.90 (low Aug.4) followed by $1,253.11 (55-day sma) and finally $1,247.32 (21-day sma). On the upside, a break above $1,273.30 (high Aug.1) would expose $1,276.43 (76.4% Fibo of the June-July drop) and then $1,298.80 (2017 high Jun.6).