Gold hits 4-week tops near $1,260.00/oz

The persistent selling bias around the buck is lifting the ounce troy of the precious metal to reach fresh multi-week tops in the $1,260 area.

Gold bid as USD plummets

The yellow metal is trading closer to YTD tops around $1,263, always backed by an intensification of the leg lower in the greenback after the House Republican voted against the American Health Care Act on Friday (‘Trumpcare’).

The vote casted doubts over the ability of the Trump administration to fulfil its promises of fiscal stimulus, prompting investors to accelerate its positioning on safe haven assets.

The US Dollar Index – which tracks the buck vs. its main rivals – has tumbled to fresh 5-month lows in sub-99.00 levels early in the European morning following Friday’s vote, extending the downside for the fourth consecutive week.

Gold key levels

As of writing Gold is gaining 0.80% at $1,258.65 facing the next hurdle at $1,263.10 (2017 high Feb.27) followed by 1,307.00 (high Nov.2 2016) and finally $1,318.60 (high Nov.9 2016). On the other hand, a breach of $1,244.80 (low Mar.23) would expose $1,240.50 (low Mar.24) and then $1,237.54 (61.8% of February-March drop).