Gold hovers near $1,250 an ounce

Gold rose to 2-week highs on Monday amid fading expectations the Fed will raise rates this month, following a weak US jobs report and a speech from Fed Chair.

The metal closed the day slightly higher around $1,244.50 an ounce,having hit a peak of $1,248.70 at the beginning of the day. Despite most base metals edged sharply higher on Monday, gold refused to rally amid lackluster physical demand.

Gold technical view

“Daily basis, the price remains stuck around a bullish 100 DMA, and a couple of dollars above a bearish 20 SMA, whilst the technical indicators in the mentioned time frame have lost upward strength around their mid-lines,” said Valeria Bednarik, chief analyst at FXStreet. “Nevertheless, the upward potential is still high amid market's sentiment towards the greenback. In the shorter term, the 4 hours chart supports some further advances for this Tuesday, as the Momentum indicator has resumed its advance within overbought territory, whilst the RSI consolidates around 70, and the 20 SMA heads north well below the current level.”

Support levels:  1,238.30 1,230.05 1,220.40. Resistance levels: 1,248.70 1,256.80 1,267.05.