Gold sits near 4-week tops around $1,265

The ounce troy of the precious metal is trading on the defensive at the beginning of the week, now returning to the $1,265 region after probing highs near $1,270.

Gold upside capped near $1,270

Bullion is retreating for the first time after two consecutive advances, although it keeps well and sound the broader bullish tone following the drop to $1,214 earlier in the month.

Gold keeps vigilant on the prospects for further tightening by the Federal Reserve at its June meeting, with the probability of such event just above 83% according to CME Group’s FedWatch tool based on Fed Funds futures prices.

Gold picked up pace as of late as investors seem to still remain sceptical of the ability of the Fed to hike twice in the rest of the year, particularly after the recent publication of the FOMC minutes.

Looking ahead, it will be a key week for the buck in light of the release of the ISM Manufacturing and the ADP report (Thursday) and May’s Non-farm Payrolls (Friday).

Gold key levels

As of writing Gold is retreating 0.19% at $1,265.69 and a breakdown of $1,255.85 (50% Fibo of the April-May drop) would aim for $1,253.59 (20-day sma) and then $1,241.17 (200-day sma). On the slip side, the next up barrier is located at 1,269.30 (high May 26) seconded by $1,272.40 (high May 1) and finally $1,277.79 (76.4% Fibo of the April-May drop).