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Gold clings to $1,200

FXStreet (Edinburgh) - The troy ounce of the precious metal is markedly lower on Tuesday, albeit managing to keep the trade above the $1,200 handle.

Gold weaker on USD

The re-emergence of the buying interest around the dollar on Monday is extending into today’s meeting, hurting the USD-denominated assets and driving the yellow metal to the area of $1,205.

In the data front, the USD has been boosted further following the better-than-expected results from the US housing sector during April. The next risk event in the markets will be tomorrow’s FOMC minutes, which will put the current USD upside under scrutiny.

Gold key levels

The metal is now losing 1.64% at $1,207.50 with the immediate support at $1,205.60 (low May 19) ahead of $1,177 (low May 4) and finally $1,168.50 (low Mar.20). On the flip side, a breakout of $1,225.76 (high May 19) would open the door to $1,228 (high May 14) and then $1,236.79 (high Feb.16).

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