Gold retreats from highs post-Yellen, near $1,220/oz

The upside momentum in the ounce troy of the precious metal seems to have run out of steam near session tops around $1,225 following the prepared statement from Chief J.Yellen.

Gold upside capped near $1,225

The yellow metal has faded part of the earlier up tick after Chair J.Yellen said the Fed stays on track to tighten further its monetary conditions and to start reducing its balance sheet at some point later in the year.

Bullion is clinching its third consecutive session with gains so far, looking to extend the bounce off last week’s 4-month lows, although the upcoming testimony by Yellen could pour some cold water over prospects of extra gains.

Gold key levels

As of writing Gold is advancing 0.56% at $1,221.56 facing the next hurdle at $1,229.50 (high Jul.6) followed by $1,230.23 (200-day sma) and then $1,238.58 (21-day sma). On the downside, a breakdown of $1,204.00 (low Jul.10) would expose $1,196.20 (low Mar.10) and finally $1,185.60 (low Jan.26).