FXStreet (Mumbai) – Gold prices extended losses to hit a fresh session low of USD 1160/Oz as the USD index rose to a one-month amid Greek crisis and a rout in Chinese stock markets.
Safe haven appeal hurt by strong USD
The metal failed to strengthen despite the ongoing Greek crisis and increasing concerns regarding the rout in the Chinese stock markets. Moreover, the USD index strengthened 1% to 97.40 levels as the European currencies are being sold on Greek crisis, while the commodity currencies are hurt by the Chinese concerns.
The widening of the US Trade deficit failed to have any negative impact on the USD, consequently, the metal traders ignored the data. Ahead in the day, the news flow out of the EU meeting and the sentiment on the Wall Street may influence the yellow metal.
Gold Technical Levels
The metal currently trades at USD 1161.20/Oz, down 0.45% for the day. The immediate support is seen at 1155.80 (July 2 low), under which the metal could target 1145-1140 levels. On the flip side, the resistance is seen at 1167.10 and 1174.40.
(Market News Provided by FXstreet)