FXStreet (Mumbai) – Gold prices dropped to the 2015 low of USD 1136.66/Oz as the USD index strengthened after the data in the US showed core CPI ticked higher in June.
Approaching Nov 2014 low
The metal has taken out the previous 2015 low at USD 1142.59 and is fast approaching the Nov 2014 low of USD 1130.10/Oz. The selling pressure strengthened after the official data in the US showed core CPI rose 1.8.% year-on-year in June. Furthermore, the housing starts beat estimates and Building permits for single and multifamily properties, a gauge of future construction, climbed to an almost eight-year high.
Consequently, the metal took a hit on increased bets of interest rate hike in 2015. However, despite of a positive data, the treasury yields at the short-end of the curve, which mimic interest rate expectations, have not been able to tick higher.
Gold Technical Levels
The immediate support is seen at 1130.10 (Nov 2014 low), under which the pair could target the psychological level of 1100. On the other hand, immediate resistance is located at 1142.59 (Mar 2015 low) and 1150.00.
(Market News Provided by FXstreet)