Gold off lows, retakes $1,290

After bottoming out in the vicinity of the $1,280 area in early trade, the troy ounce of the precious metal has managed to pick up some pace and is now around $1,290.

Gold down from 2016 tops

Bullion is shedding some ground today as market participants seem to be cashing up part of recent strong gains, specially after yesterday’s fresh 2016 high at $1,316.40, although today’s selling bias in the dollar seems to be somewhat limiting the pullback to the $1,280 region for the time being.

Despite the ongoing correction, Gold is closing its third consecutive week with gains, including a visit of the $1,320 area, levels last seen in August 2014. Looking ahead, developments around the EU-UK Referendum are poised to be the main drivers behind the metal's price action.

Gold key levels

As of writing Gold is losing 0.44% at $1,292.50 facing the next hurdle at $1,316.40 (2016 high Jun.16) followed by $1,330.00 (high Apr.14 2014) and then $1,343.70 (high Jul.10 2014). On the other hand, a breakdown of  $1,253.14 (55-day sma) would pave the way to a test of $1,240.91 (100-day sma) and finally $1,199.00 (low May 31).