Prices of the safe-haven gold failed to sustain early-session gains following news that the US will end Iran sanctions waivers. White House has decided not to extend waivers for all oil buyers that previously allowed them to purchase of some Iranian crude, according to a statement. The announcement stoked risk aversion and sent prices of the precious metal up initially. However, the greenback continues to thrive at the beginning of this week to keep Gold prices under pressure as investors return to risk-on mode from the rally on Wall Street, upbeat Chinese economic data and improved consumer sentiment in Germany.
Gold prices are back on the downside after failing to break above the $1280 level from last week's recovery. The price is currently trading just above last week's lows around the $1272 level, as the momentum is loosing traction again and heading towards the oversold zone. A break below the $1270 level looks more likely to happen and that will open the possibility to reach the $1265.42 support level which we will be focusing on.
Support: 1277.18/ 1270.1
Resistance: 1280.11/ 1282.19