FXStreet (Mumbai) – Gold prices fell briefly to a low of USD 1088/Oz, before quickly moving back to trade around USD 1095/Oz even though the US core durable orders for June printed higher than expected.
Is gold responding to risk aversion in equities?
The yellow metal has been resilient today, pointing to a possibility of rise in safe haven demand due to the rout in Chinese equities. Off-late the metal has hardly responded to sell-of in equities and other risk-of events like Greek crisis.
However, the metal has managed to stay resilient today, despite the strong US data. Moreover, the US major US index futures, currently down by more than 0.5%, could be lending support to the metal. Furthermore, the rise in gold is in line with an uptick in other traditional safe haven assets like the treasuries, Japanese Yen, Swiss Franc.
Gold Technical Levels
The immediate resistance is located at the daily high of 1104.90, above which prices could rise to 1115.01 (hourly 200-MA). On the flip side, a break below 1092.21 (hourly 50-MA) could push the spot lower to 1077.44.
(Market News Provided by FXstreet)