Gold Needs To Hold Above $1,270

New York (April 23)  Gold prices extend losses for a third week in a row. Last week, the precious metal failed to hold above the 100-DMA after a break below the $1,300 handle and remains under the selling pressure since then. As a result, the prices are oscillating around 2019 lows, threatening the $1,270 figure.

The metal failed to derive support from the news that the US will end Iran sanctions waivers, while oil prices spiked to fresh November highs on Tuesday. The dollar demand is also muted though it doesn’t help the bullion either. Risk sentiment looks mixed at the moment, with investors are slowly resuming activity after the Easter holiday. So there are no significant incentives for gold from this front as well.

In general, the undermined appeal of the non-interest-bearing gold will keep the prices under pressure in the near term. The upside correction may take place now if risk aversion arrives at the global financial markets. In the current environment, the yellow metal needs to hold above the $1,270 area in order to avoid a more aggressive decline.

Investing.com