Gold off highs, back near $1,260

The troy ounce of the precious metal is extending its sideline theme today, posting meagre gains around the $1,260 area.

Gold weaker on rate hike speculations

Bullion is closing its second consecutive week with losses after being rejected from 2016 peaks above the $1,300 mark in early May.

An increasing buying interest around the greenback combined with expectations of a potential rate hike by the Federal Reserve as soon as the June meeting has been weighing on the yellow metal and dragged it to fresh 3-week troughs in sub-$1,250 levels on Thursday.

Gold key levels

As of writing Gold is up 0.25% at $1,257.95 and a surpass of $1,304.40 (2016 high May 2) would aim for $1,322.10 (high Aug. 8 2014) and finally $1,343.70 (high Jul.10 2014). On the other hand, the next support lines up at $1,247.50 (low May 19) ahead of $1,209.20 (low Apr.1) and then $1,161.58 (200-day sma).