Gold deflates from lows, still above $1,280/oz

The ounce troy of the precious metal has started the week on a weak note, as NK-led geopolitical jitters seem to have eased somewhat as of late.

Gold holding on above $1,280

The demand for the safe haven metal is losing momentum on Monday, coming down from last week’s fresh 2-month peaks just below the $1,300 limestone after US officials talked down on Sunday the likelihood of an armed conflict with North Korea.

Adding to the selling mood around the yellow metal, the greenback seems to have left behind Friday’s weakness following US inflation figures and is now regaining the 93.00 level and beyond when tracked by the US Dollar Index (DXY).

After three consecutive daily advances, Bullion met a strong selling impetus today and is expected to remain under pressure via USD-dynamics in light of key US data in the pipeline and the FOMC minutes (Wednesday).

Gold key levels

As of writing Gold is losing 0.55% at $1,286.93 facing immediate contention at $1,280.30 (low Aug.10) followed by $1,277.42 (10-day sma) and finally $1,262.59 (61.8% Fibo of the June-July drop). On the flip side, a break above $1,298.10 (high Aug.11) would open the door to $1,298.80 (2017 high Jun.6) and then $1,318.60 (high Nov.9 2016).