Gold finally broke down of its three-day-old consolidative trading range and tumbled to near four-month lows, farther below $1270 level in the last. The precious metal added to last week's sharp fall of around 1.5% and the latest leg of a downfall comes amid a goodish pickup in the US Dollar demand. The incoming US economic data, including a jump in monthly retail figures, extended some support to the greenback and eventually drove flows away from the dollar-denominated commodity. The bearish trend seemed rather unaffected by an escalation in the US-Iran tensions, wherein the US plans to halt waivers for countries that import Iranian oil and the prevalent cautions mood in equity markets, which tends to benefit the precious metal relative safe-haven status.
Gold prices dipped more during yesterday's session to reach new yearly low at $1266.18 per ounce before immediately erasing most of the losses. The price is currently hovering around the $1270 level with a relatively bearish momentum. We expect the yellow metal to find support at the $1270.10 support level before starting a recovery.
Support: 1277.18/ 1270.1
Resistance: 1280.11/ 1282.19