FXStreet (Mumbai) – Gold prices trade weak ahead of the data in the US which could show retail sales growth rebounded in May, while jobless claims stayed below 200K for the week ended June 5.
Gold hits session low of USD 1178.4
Prices extended losses to hit a session low of USD 1178.4/Oz as an upbeat retail sales figure could increase the probability of a September rate hike by the Fed. The yellow metal begun its downward journey earlier today from the high of USD 1188.00 mainly on account of the rise in the USD index. However, the USD appears to have steadied itself, despite which Gold extended losses.
Apart from the US data, the investors will also look for signs of risk aversion on Wall Street and rout in bond markets. Both factors may push investors more into Gold due to its safe haven appeal.
Gold Technical Levels
The immediate support is seen at 1177.44 (5-DMA), under which losses could be extended to 1169.6 (May. 1 low). On the other hand, a break above 1188.00 could push the metal higher to 1194.50 (50-DMA).
(Market News Provided by FXstreet)