Precious Gold rose slightly on Monday, hovering above four-month low, after bank holidays in some European countries and amid the absence of economic data from the United States.
The movement in gold prices is largely depending on technical factors as the metal rose after finding support at $1240 levels, where the coming resistance is located at $1262.50.
Last week, gold managed to end the week on a small gain after the ECB decided to introduce new measures to combat deflation and bolster banks’ lending.
The ECB cut interest rate by 10 basis points and the deposit rate to -0.10 percent, in addition to launching a 400-billion targeted LTROs to bolster bank lending to small companies.
The measures gave some haven demand to the metal and revived its merit as an inflation hedge.
In the U.S., eyes will focus on retail sales data due later in the week after the NFP showed that U.S. employers added 217,000 jobs in May from a downwardly revised of 282,000, higher than forecasts of 215,000, while unemployment rate lingered at 6.3 percent, lower than estimates of 6.4 percent.
Investors will keep their attention on U.S. data on expectations the Fed would continue with its stimulus reduction.
Gold is currently trading around $1255.47 an ounce after hitting a high of $1255.95 and a low of $1250.18.
The yellow metal, however, may face some pressure as world stocks remained near record high on Monday, where the S&P 500 recorded its fourth straight record closing high and Dow posted its third.
The US Dollar retreated versus a basket of major currencies to hover around 80.58, after touching a bottom of 80.56.
Crude Oil for July’s delivery soared to trade around $104.77 a barrel from the session’s opening of $104.48.
Oil prices extended its gains for a fourth straight session on predictions that crude inventories slipped for a second week in the U.S., the world’s largest oil consumer.