Gold drops to lows near $1,270 ahead of Yellen

The ounce troy of the precious metal is extending its weekly downside today, hovering over the $1,275/70 band.

Gold lower ahead of Yellen, ‘Brexit’

A bearish tone prevails around the yellow metal on Tuesday, amidst increasing cautiousness amongst traders in light of Yellen’s testimony before the Senate Banking Committee later in the NA session.

Adding to the selling bias, the current recovery of the greenback keeps weighing on the USD-denominated assets, prompting bullion to recede for the second consecutive session.

Gold key levels

As of writing Gold is losing 1.25% at $1,276.15 facing the next support at $1,272.00 (low Jun.21) followed by $1,256.79 (55-day sma) and finally $1,245.34 (100-day sma). On the other hand, a breakout of $1,316.40 (2016 high Jun.16) would expose $1,330.00 (high Apr.14 2014) and then $1,343.70 (high Jul.10 2014).