FXStreet (Mumbai) – Gold prices extended the decline to hit a fresh session low of USD 1178/Oz due to hawkish comments from Fed’s Powell.
Rate hike bets hurt Gold
Fed’s Powell said the rates could be lifted as early as September, while stating that that a percentage point rate hike this year is possible in case the economy grows as anticipated. Indirectly, Powell is the first Fed policy maker to put two rate hikes on the table for this year.
Consequently, the yellow metal extended the losses as the treasury yields witnessed gains. The 10-year extended gains to 2.416%, while the 2-year yield, which is more sensitive to short-term interest rate fluctuations, rose to 0.682%. Ahead in the day, the metal could be influenced by the US manufacturing PMI data and new home sales data.
Gold Technical Levels
The metal currently trades at 1176.9. The immediate support is seen at 1172.6 (June 15 low), under which the metal could target 1162.5 (June 5 low). On the flip side, a break above 1182.00 could see the metal rise to 1187.55 (10-DMA).
(Market News Provided by FXstreet)