Gold in 2-month tops around $1,280/oz

The ounce troy of the precious metal is trading on a firm note on Wednesday, currently advancing to the area of multi-week tops around $1,280.

Gold bid on risk-off pick up

The demand for the safe have metal has been boosted on Wednesday in response to increasing geopolitical jitters after North Korea threatened to attack Guam.

Bullion thus reverted the initial selling bias sparked at the beginning of the week amidst a broader recovery of the greenback, particularly after July’s non-farm payrolls and June’s JOLTs figures published yesterday.

In addition, the yellow metal is extending the bounce off Tuesday’s multi-day lows in the $1,257 area, where converges the 21-, 55- and 100-days moving averages. This area is also reinforced by the proximity of the 50% Fibo retracement of the June-July drop.

Ahead in the week, risk-off trends will surely remain a market mover for Gold ahead of critical US inflation figures due on Friday.

Gold key levels

As of writing Gold is up 1.42% at $1,280.43 and breakout of $1,284.20 (high Jun.14) would expose $1,297.40 (high Apr.14) and then $1,298.80 (2017 high Jun.6). On the other hand, the immediate support lines up at $1,262.59 (61.8% Fibo of the June-July drop) followed by $1,257.10 (low Aug.8) and finally $1,255.72 (55-day sma).