FXStreet (Mumbai) – Gold prices saw little strength on Friday after EU commissioner gave Athens five days to avoid a Grexit.
Gold hurt by US rate outlook
The metal has been unable to strengthen despite rising fears of Grexit. EU commissioner Oettinger expressly stated today that Grexit would happen if the two parties do not reach a deal before June 30. Gold prices hardly reacted to his comments.
Moreover, the gains are being capped as investors weigh up the outlook for the US economy and interest rate increases. The metal remained sideways in the range of USD 1173.6/Oz to USD 1175.3/Oz. The losses have been capped to some extent due to the risk aversion in the Asian equities due to faltering Greek debt talks.
Gold Technical Levels
he immediate resistance is seen at 1179.8, above which gains could be extended to 1186.03 (hourly 200-MA). On the flip side, a break below 1175 could see the metal target 1170.3.
(Market News Provided by FXstreet)