Gold in 4-week tops ahead of FOMC

The ounce troy of the precious metal has gathered further traction today, testing fresh 4-weel peaks near $1,170.

Gold stronger as USD gives way

Bullion is advancing for the second consecutive week for the time being, extending the bounce off multi-month lows near $1,120 seen in mid-December, amidst a generalized selling bias around the greenback.

The Dollar – gauged by the US Dollar Index – has deflated today after clinching fresh 14-year tops in the boundaries of 103.80 on Tuesday following auspicious results from the US manufacturing sector, with both Markit and ISM PMIs surpassing expectations. The current USD knee-jerk has allowed the yellow metal to extend its bounce to multi-week peaks, although the up move seems to have run out of legs near $1,170 so far.

Later in the NA session, market participants expect the FOMC minutes to come in on the hawkish side, helping the buck to reclaim part of the ground lost.

Gold key levels

As of writing Gold is gaining 0.26% at $1,165.05 and a breach of 1,146.50 (low Jan.3) would aim for $1,126.50 (low Dec.20) and finally $1,123.90 (low Dec.15). On the upside, the next hurdle is located at $1,168.55 (high Jan.4) followed by $1,180.55 (high Dec.8) and then $1,217.35 (high Nov.21).