1 Jul 2015
Gold drops top session low of USD 1167.30/Oz
FXStreet (Mumbai) - Gold prices weakened to a session low of USD 1167.40/Oz as the upbeat ADP employment data supported the case of a rate hike in 2015.
US rate outlook restricts safe haven demand
The safe haven appeal of the metal has suffered since the rate hike talks begun in late 2014. The metal has been trading lackluster throughout the Greek deal saga as rebounding US economy has triggered speculation of a September rate hike. A Similar move is witnessed in Safe haven Treasuries, which weakened despite the Greek crisis.
Investors now await the US Marki and ISM manufacturing PMI data due for release in a few minutes. Upbeat figures could further hurt the safe haven metal.
Gold Technical Levels
The immediate support is seen at 1166.30 (June 30 low), under which the metal could extend the drop to 1160. On the flip side, a break above 1174.40 could see the metal re-test 1180.00 levels.
US rate outlook restricts safe haven demand
The safe haven appeal of the metal has suffered since the rate hike talks begun in late 2014. The metal has been trading lackluster throughout the Greek deal saga as rebounding US economy has triggered speculation of a September rate hike. A Similar move is witnessed in Safe haven Treasuries, which weakened despite the Greek crisis.
Investors now await the US Marki and ISM manufacturing PMI data due for release in a few minutes. Upbeat figures could further hurt the safe haven metal.
Gold Technical Levels
The immediate support is seen at 1166.30 (June 30 low), under which the metal could extend the drop to 1160. On the flip side, a break above 1174.40 could see the metal re-test 1180.00 levels.