FXStreet (Mumbai) – Gold prices continue to weaken despite the increased possibility of a Grexit after Sunday’s ‘No’ vote victory in Greek referendum.
Gold falls along with equities
The equity markets across the have suffered due to Greece-led risk aversion. The major Asian equities fell, while the European equities are following suit. The German Dax is down 1.22% and the London’s Ftse fell 0.50%. Still, the safe haven metal has failed to strengthen.
Meanwhile, Gold is accompanied by another safe haven, CHF, which weakened too. However, the weakness in the CHF may have been due to rumours of SNB intervention. Other safe haven assets like the Treasuries, Bunds, Japanese Yen strengthened.
The metal breached the support at 1166 (hourly 50-MA) and extended losses to hit a session low of USD 1162.50/Oz.
Gold Technical Levels
The immediate resistance is located at 1166 (hourly 50-MA), above which the metal could target 1172.10 (10-DMA). On the flip side, a break below the immediate support at 1162.10 (previous month low) could push the metal lower to 1143.50 (March low).
(Market News Provided by FXstreet)