Gold drops in line with other safe havens

FXStreet (Mumbai) – Gold continued its steady decline to hit a session low of USD 1179.5/Oz, in line with the similar weakness seen in other traditional safe havens – JPY, CHF, Treasuries, Bunds.

Focus on US data

Investors await the US durable goods report, which is expected to show a contraction of 0.5% in May. The durable goods report will be followed by the preliminary manufacturing data and new home sales report.

Apart from the US data, the broader market sentiment with regards to the safe havens would also impact the metal. Moreover, safe haven assets have been ditched in the European session after optimism surrounding Greek deal triggered risk-on rally in the equities.

Gold Technical Levels

The immediate support is seen at 1175.9, under which the metal could extend the drop to 1172.6. On the flip side, a break above 1186.4 could drive the metal higher to 1187.11 (hourly 200-MA).

Gold continued its steady decline to hit a session low of USD 1179.5/Oz, in line with the similar weakness seen in other traditional safe havens – JPY, CHF, Treasuries, Bunds.

(Market News Provided by FXstreet)