Gold tests highs around $1,280, Fedspeak eyed

The ounce troy of the precious metal is extending its weekly advance today, testing daily tops in the $1,280 area.

Gold firmer ahead of Fedspeak

Bullion is advancing for the fifth session in a row, recovering ground lost after the recent drop from 2016 highs above the $1,300 handle to the $1,260 neighbourhood seen last week.

Anyway, the precious metal keeps its buoyant tone so far this year, up nearly 20% on expectations of a more gradual rate hike path from the Federal Reserve.

The recent rally in the greenback seems to be taking a breather today as positive results from US CPI, Industrial Production and the housing sector failed to ignite further buying interest, all ahead of speeches by Fed’s Lockhart, Williams and Kaplan.

Gold key levels

As of writing Gold is up 0.61% at $1,282.50 and a surpass of $1,304.40 (2016 high May 2) would aim for $1,322.10 (high Aug. 8 2014) and finally $1,343.70 (high Jul.10 2014). On the other hand, the next support lines up at $1,267.40 (low May 10) ahead of $1,250.83 (55-day sma) and then $1,209.20 (low Apr.1).