Gold well bid on safe-haven appeal post Greek referendum

FXStreet (Mumbai) – Gold prices on Comex jolted higher in early Asian trades, swinging back higher above 1170 levels on increasing demand for safety assets as uncertainty looms around Greece’s existence in the Euro zone following the results of the Greek referendum show that voters said a resounding “No” to the bailout terms offered by its creditors.

Gold tests $ 1175

Currently, gold trades 30% higher at 1171.30, extending recovery from 1155.80 lows reached on Thursday. Gold prices prolongs its recovery path and gained further momentum after the Greek referendum results show a clear victory for the Greek government favouring a ‘NO ‘vote.

The Greek referendum results nudged the European leaders both in Greece and elsewhere, already planning their next steps and first discussions are already scheduled for Monday. Markets now prefer to remain on the side-lines amid increasing uncertainty over Greece’s futures in the European Union which supports gold’s allure as a safe-haven.

However, the upside in the yellow metal was capped by the strengthening US dollar largely on the back tumbling EUR/USD post Greek referendum. The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, trades 0.31% higher at 96.67.

Gold Technical Levels

The metal has an immediate resistance at 1175 and 1180 levels. Meanwhile, support stands at 1166.70 below which doors could open for 1164.60 levels.

Gold prices on Comex jolted higher in early Asian trades, swinging back higher above 1170 levels on increasing demand for safety assets as uncertainty looms around Greece’s existence in the Euro zone following the results of the Greek referendum show that voters said a resounding “No” to the bailout terms offered by its creditors.

(Market News Provided by FXstreet)