FXStreet (Mumbai) – Gold prices stayed largely ignorant to the mixed batch of US data released on Friday, but are well set on their way to print a loss for fifth straight week.
Gold: down 4.5% on week, 1.12% on day
The metal fell 1.12% on the day taking the cumulative losses for the week to 4.5%. The weekly low at USD 1072/Oz was set in the Asian session on Monday after huge volumes were sold on a key Shanghai physical contract. Consequently, the holdings in the top gold fund SPDR Gold Trust fell to the lowest since 2008. However, the drop in the initial part of the week and especially on Monday was not accompanied by the USD strength. Thus, the metal recovered to USD 1109.82/OZ on Tuesday, before falling back below USD 1100/Oz on Thursday; this time due to USD strength.
The sharp weakness in the Gold and its falling safe haven appeal amid increasing rate hike expectations in the US makes it a risky asset ahead of the next week’s Fed meet and US Q2 GDP report.
Gold Technical Levels
The metal currently trades around USD 1082.45/Oz. The immediate support is seen at the weekly low of 1072, under which the metal could extend the drop to 1044.10 (Feb 2010 low). On the other hand, a break above the immediate resistance at 1100 could see the metal re-test 1130 (Nov 2014 low).
(Market News Provided by FXstreet)