Gold failing as a safe haven?

FXStreet (Mumbai) – Gold is once again under performing as a safe haven asset on Monday even though the Greek referendum on Sunday resulted in a stunning majority of a ‘No’ vote.

Gold losing its shine..

The yellow metal has erased early gains to trade at USD 1166.40/Oz; down 0.13% on the day. The metal turned lower from the high of USD 1174.40/Oz. Meanwhile, the benchmark 10-year treasury yield fell almost 10 basis points, thereby pushing the US dollar higher across the board. The high demand for the treasuries also weighed over the Swiss Franc, which is down 0.49% against the USD. Still, the Yen has managed to stay resilient against the USD.

US rate outlook hurting Gold

The metal is under pressure on prospects of a rate hike in September 2015. The Fed indicated a possibility of two rate hikes this year. Consequently, the metal is suffering even though the world has moved closer to Grexit.

Gold Technical Levels

The immediate resistance is located at 1172.10 (10-DMA), above which the metal could target 1188.73 (50-DMA). On the flip side, a break below the immediate support at 1166 (hourly 50-MA) could push the metal lower to 1150.00.

Gold is once again under performing as a safe haven asset on Monday even though the Greek referendum on Sunday resulted in a stunning majority of a ‘No’ vote.

(Market News Provided by FXstreet)