FXStreet (Mumbai) – Gold prices fell to an intraday low of USD 1146.20/Oz due to the strong US dollar and rate hike expectations in the US.
Gold losing its shine as a safe haven asset?
The metal has been unable to strengthen throughout the Greek deal drama and now falls below USD 1150/Oz even though the Chinese stock market crash pose a bigger challenge to the global economy. The safe haven metal appears to have lost its shine due to the talk of a rate hike in the US and due to the strength in the USD.
So far, the treasuries are being preferred at times of risk aversion, thereby strengthening the USD. Consequently, the metal turned lower from the high of USD 1157.40 to trade below USD 1150/Oz. Ahead in the day, the metal traders would watch out for the indications regarding the timing of a rate hike in the Fed minutes.
Gold Technical Levels
The immediate support is located at 1142.40, under which the metal could drop to 1130.40 (Nov 2014 low). On the flip side, a break above 1155.80 (previous week low) could see the metal target 1170.00 (April low).
(Market News Provided by FXstreet)