Gold reverts the downside, testing $1,280.00/oz

• Bullion recovers from multi-week lows
• Likelihood of (hawkish) J.Taylor to lead the Fed weighing on the metal
• Demand for the safe haven metal turns up as yields recede

The ounce troy of the precious metal is now wobbling between gains and losses, managing to revert the initial drop to lows near the $1,270.00 area.

Gold under pressure on Fed rumours

Bullion retreated further today in response to rising speculations on the likeliness that (pro-USD) candidate John Taylor could be Yellen’s successor at the helm of the Federal Reserve.

It is worth mentioning that current FOMC governor Jerome Powell and former FOMC governor Kevin Warsh are the other candidates and according to latest news, President Trump should make any decision on the matter in the upcoming days.

News that Taylor could be the next Fed Chairman has boosted yields in the US money markets today, sending yields of the key US 10-year reference beyond the 2.47% level, area last visited in March.

In addition, US durable goods orders came in on the strong side for the month of September, prompting the greenback to pare some daily losses when measured by the US Dollar Index (DXY).

Gold key levels

As of writing Gold is up 0.03% at $1,278.87 and a breakout of $1,285.06 (21-day sma) would expose $1,288.19 (10-day sma) and then $1,308.40 (high Oct.16). On the downside, the next support aligns at $1,272.60 (low Oct.25) seconded by $1,262.80 (low Oct.6) and finally $1,261.18 (200-day sma).