Gold flirting with highs near $1,290

The troy ounce of the precious metal keeps pushing higher on Monday, currently testing fresh highs near $1,290.

Gold in multi-week peaks

The yellow metal is navigating 6-weeks tops around the $1,290 level backed by the current risk aversion context, paving the way at the same time for a potential test of 2016 high just above the key barrier at $1,300 (May 2).

Today’s upside in bullion remains propped up by the offered, albeit mild, bias in the US dollar, against the backdrop of empty docket in the US economy, rising volatility tracked by VIX and declining yields in the US money market.

Gold key levels

As of writing Gold is advancing 0.91% at $1,287.45 facing the next hurdle at $1,304.40 (2016 high May 2) followed by $1,313.20 (high Aug.7 2014) and then $1,330 (high Apr.14 2014). On the other hand, a breakdown of  $1,250.25 (55-day sma) would pave the way to a test of $1,236.50 (low Jun.7) and finally $1,199.00 (low May 31).