Gold consolidates ahead of the US session

FXStreet (Mumbai) - Gold prices consolidated just above USD 1180/Oz levels as the markets continue to digest a dovish fed statement released last week, while keeping an eye on the developments in Greece.

The weakness in the US dollar is supporting the yellow metal. However, there still exists an uncertainty surrounding the timing of interest rate hike in the US. Though the Fed revised its interest rate forecasts significantly lower last week, the doors are still open for a rate hike in June. Consequently, the investors are unable to take big bullish bets on the yellow metal.

Meanwhile, concerns regarding Greece’s futures in the Eurozone is likely to attract safe haven demand for the metal. The Merkel-Tsipras talks scheduled later today, along with the ECB president Mario Draghi’s testimony could also influence the yellow metal. The housing data due for release in the US may not have a significant impact on Gold.

Gold currently trades at USD 1182.10/Oz levels, down 0.20% for the day, while the USD index is down 0.49% at 97.57 levels.

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