Gold challenging 2017 tops near $1,300/oz

The troy ounce of the precious metal is trading in multi-week tops in the boundaries of the $1,300 handle on Tuesday, backed by the resurgence of the risk-off trade in the global markets.

Gold bolstered by risk aversion

Bullion keeps the 5-week rally intact for the time being, extending the bounce off May’s lows around $1,215, gaining nearly 7% since then and almost fully retracing the April-May decline.

Renewed jitters in the Middle East have been sustaining the demand for the yellow metal after Saudi Arabia, UAE, Egypt and Bahrain have severed their ties with Qatar on Monday.

Furthermore, recent terrorists attacks in UK and Australia have also lent extra wings to the upside in the safe haven metal, while the upcoming elections in the UK and the testimony by former FBI’s Chief J.Comey before the Senate Intelligence Committee (both due on Thursday) should add to the prevailing uncertainty and thus lend support to Gold.

Gold key levels

As of writing Gold is advancing 1.05% at $1,295.81 and a breakout of $1,297.40 (2017 high Apr.17) would open the door to $1,307 (high Nov.2 2016) and finally $1,318.60 (high Nov.9 2016). On the other hand, the next support emerges at $1,280.20 (low Jun.5) seconded by $1,261.30 (low Jun.2) and then $1,259.62 (55-day sma).