FXStreet (Mumbai) – Gold prices on Comex extends remains pressured in the European session, as traders prefer to hold the greenback ahead of the US non-farm payrolls report later in the day amid the prospect of higher US interest rates.
Gold bounces-off 1162.40
Currently, gold trades -0.46% at 1163.90, having posted day’s low at 1162.40 and day’s high at 1167.70. Gold prices dropped to fresh one-month lows, although bounced-off lows and keeps losses as markets expect the upcoming US labor report is forecast to show healthy numbers for June, increasing the possibility that interest rates in the US would rise soon.
A rate lift-off would boost the US currency and weigh negatively on bullion which is a non-interest bearing asset. Meanwhile, the US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, trades muted around 96.45.
Gold prices also failed to receive support as safe-haven asset amid positive updates from Greece after Greek Prime Minister Alexis Tsipras claimed willingness to accept bailout conditions according to reports. However, the situation remained nervous with the referendum on the bailout program due July 5.
Gold Technical Levels
The metal has an immediate resistance at 1170 and 1175 levels. Meanwhile, support stands at 1162 below which doors could open for 1160 levels.
(Market News Provided by FXstreet)