FXStreet (Mumbai) – Gold prices have flattened around USD 1160-1162/Oz levels, amid the risk-on rally across the globe and the resulting weakness in the USD index.

Losses capped by weakness in the USD index

The risk-on rally in the equities across the globe on increased hopes of Greek debt deal resulted in a weakness in the USD index; down almost 1% at 95.74. Consequently, the losses in the metal have been restricted around USD 1160/Oz.

Meanwhile, the upside in the metal is being capped due to the rally in the riskier assets. The S&P 500 futures are trading higher by more than 1%, while the major equity indices in European are up more than 1%. Ahead in the day, the metal could take cues from Yellen’s speech and overall market sentiment.

Gold Technical Levels

The metal faces immediate resistance at 1166.20 (hourly 200-MA), above which the prices could rise to 1174.7 (July 6 high). On the other hand, support is seen at 1157.6 and 1154.9.

Gold prices have flattened around USD 1160-1162/Oz levels, amid the risk-on rally across the globe and the resulting weakness in the USD index.

(Market News Provided by FXstreet)

By FXOpen