It was another tough night for gold as it fell 15 dollars to 1267.00 at one stage, before dusting itself off and climbing back to 1273 where it trades in early Asia.
The U.S. dollar at its highest levels in three weeks following hawkish Fed comments and decent retail sales data overnight. This saw U.S. bond yields rise across the curve which almost always torpedoes gold prices below the waterline. A perceived decline in North Korean tensions has temporarily removed the risk aversion premium loaded into recent gold pricing.
Gold has initial resistance just above present levels at 1274.20 followed by 1282.00 with support at the overnight low of 1267.00 and then 1260.00. The must hold level continues to be the 100-day moving average, today at 1255.00.