FXStreet (Mumbai) – Gold prices stay relatively unchanged after a batch of service activity indicators indicated the activity continued to expand in June.
Gold stuck at hourly 50-MA
The metal is struggling to extend gains above the hourly 50-MA located at USD 1166/Oz. The gains may be capped by the strength in the USD after the Greeks rejected creditor’s offer in the referendum on Sunday. Moreover, the demand for the safe haven US Treasuries increased, thereby supporting the US dollar., while Gold erased gains seen in the Asian session due to rate hike expectations in September 2015.
The metal hardly reacted to a the ISM services activity index, which ticked higher to 56.00 in June. Meanwhile, the Markit services PMI ticked lower to 54.8, but still stayed well in the expansion territory (above 50.00).
Ahead in the day, the metal could be influenced by the ECB’s decision to allow/not allow liquidity to assistance to Greek banks. The sentiment on the Wall Street could also affect the metal.
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)