FXStreet (Mumbai) – Gold prices on Comex erased overnight gains and trades muted in early Asia, hovering close to a new four day low reached at 1175.50 on Tuesday after Fed official Powell hawkish comments which added to the increased rate hike bets as early as this Sept.
Gold extends weakness
Currently, gold trades almost unchanged at 1175.90, on its way to breach 1170 levels. Gold prices trades directionless in a slim range this session, as higher Asian equities and Greek hopes continue to hurt gold’s appeal as a safe-haven.
Moreover, the recent strength in the US dollar on strong US fundamentals fuelled rate-hike talks, diminishing gold’s allure as a higher yielding asset.
Meanwhile, the US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, trades flat at 95.58. A stronger US dollar makes dollar priced-in commodities more expensive for holders in foreign currencies.
While, traders eye Greece update ahead of the Euro group meeting later today while US final GDP figures will be closely watched later in the NA session.
Gold Technical Levels
The metal has an immediate resistance at 1180 and 1185 levels. Meanwhile, support stands at 1173.90 (June 15 Low) below which doors could open for 1170 levels.
(Market News Provided by FXstreet)