10 Mar 2015
Gold tumbles nearly 1% on USD dominance
FXStreet (Mumbai) - Gold prices on Comex plunged nearly 1% in the European session, as the absolute greenback dominance on increased bets of Fed June rate-hike on table, knocked the yellow metal off to new three month lows.
Gold falls from USD 1160
Currently, gold trades -1% lower at fresh three month lows of 1154.30 levels, retreating from daily highs at 1168.30 levels. Gold prices extended losses as the USD rallied to fresh twelve year peak amid widespread speculation that the Fed may remove ‘patient” word in its upcoming meeting on March 18, advocating a rate-hike as soon as this summer. Risk of earlier rate-hike dents demand for non-interest-bearing yellow metal, dragging its prices lower.
Moreover, in signs of lack of investors’ confidence in gold, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.43% to 753.04 tonnes on Monday - their lowest in more than a month.
Gold Technical Levels
The metal has an immediate resistance at 1174 (hourly 20-DMA) and 1180 levels. Meanwhile, support stands at 1150 levels below which doors could open for 1143.40 (Dec 2014 Low) levels.
Gold falls from USD 1160
Currently, gold trades -1% lower at fresh three month lows of 1154.30 levels, retreating from daily highs at 1168.30 levels. Gold prices extended losses as the USD rallied to fresh twelve year peak amid widespread speculation that the Fed may remove ‘patient” word in its upcoming meeting on March 18, advocating a rate-hike as soon as this summer. Risk of earlier rate-hike dents demand for non-interest-bearing yellow metal, dragging its prices lower.
Moreover, in signs of lack of investors’ confidence in gold, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.43% to 753.04 tonnes on Monday - their lowest in more than a month.
Gold Technical Levels
The metal has an immediate resistance at 1174 (hourly 20-DMA) and 1180 levels. Meanwhile, support stands at 1150 levels below which doors could open for 1143.40 (Dec 2014 Low) levels.