Gold sinks to 2-month lows near $1,230/oz

The troy ounce of the precious metal is prolonging the offered bias on Thursday, visiting fresh 2-month lows in the $1,230 region.

Gold weaker post-FOMC

Bullion keeps ignoring the selling bias around the greenback, more preoccupied instead after the FOMC left open the door for a rate hike at the June meeting.

In fact, the Committee expects the economy to keep expanding at a moderate pace, while it once again reiterated the solid momentum from the US labour market and made no mentions as when the Fed could start to reduce its balance sheet.

In addition, risk appetite trends remain firm among investors, particularly after the Macron win at the first round of the French elections, while the upcoming second round should see the centrist candidate winning over far-right candidate Marine Le Pen, sustaining further the outflows from the safe haven metal.

Gold key levels

As of writing Gold is losing 1.29% at $1,232.34 and a break below $1,227.03 (low May 4) would open the door to $1,222.07 (100-day sma) and then $1,196.20 (low Mar.10). On the flip side, the next up barrier aligns at 1,242.58 (high May 4) seconded by $1,249.90 (200-day sma) and finally $1,272.40 (high May 1).