FXStreet (Mumbai) – FOMC minutes led broad USD weakness couple with global equities sell-off boosted the safe-haven bids for the gold, pushing the prices to fresh six week highs just at the shouting distance of 1170 levels.
Gold rally extends amid risk-off trades
Currently, gold trades nearly 1% higher at 1163.40, slightly retreating from fresh multi-week highs reached at 1167.80 in early Asia. The yellow metal rallied as investors’ flocked to safe-haven assets amid global turmoil, with Asian equities deep in the red, political tensions in Korea and Greece escalating while the Chinese economic crisis worsens evidenced by the latest China’s manufacturing report which stood at 6-1/2 year lows.
Meanwhile, the US dollar index, a virtual gauge of greenback’s strength, trades -0.36% ower at 95.43. A weaker US dollar makes dollar-denominated commodities cheaper for holders in foreign currency.
Gold Technical Levels
The metal has an immediate resistance at 1171.50 (July 7 High) and 1180 levels. Meanwhile, support stands at 1153 (Today’s Low) below which doors could open for 1148.50 (July 8 Low) levels.
(Market News Provided by FXstreet)