19 Jun 2015
Gold remains in red below $ 1200
FXStreet (Mumbai) - Gold prices on Comex finally broke below 1200 barrier and extends losses in the European session, as a solid rebound in US dollar keeps the metal undermined, offsetting any support received from Greece impasse.
Gold declines further on stronger USD
Currently, gold trades -0.27% lower at 1198.70, having posted fresh session lows at 1198.10. Gold prices extends its downbeat momentum as the US dollar returned to gains amid lack of fresh fundamentals.
The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, trades 0.41% higher at fresh session highs of 94.59. A stronger US dollar makes dollar priced-in commodities more expensive for holders in foreign currencies.
Moreover, profit-taking on Gold longs after the recent rally spurred by Fed’s dovish policy stance while fresh core inflation numbers surprisingly weakened for the first time this year, which added further to the dovish bias of the Fed.
Traders also keep an eye on Greece which has still not been able to bridge differences with its creditors, despite last-minute efforts to avoid a default. Talks on Greece will be held again on Monday after negotiations between Athens and the rest of the euro zone failed to end an impasse.
Gold Technical Levels
The metal has an immediate resistance at 1205.70 (June 18 High) and 1208.90 (May 26 High) levels. Meanwhile, support stands at 1195 below which doors could open for 1191.50 (May 13 Low) levels.
Gold declines further on stronger USD
Currently, gold trades -0.27% lower at 1198.70, having posted fresh session lows at 1198.10. Gold prices extends its downbeat momentum as the US dollar returned to gains amid lack of fresh fundamentals.
The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, trades 0.41% higher at fresh session highs of 94.59. A stronger US dollar makes dollar priced-in commodities more expensive for holders in foreign currencies.
Moreover, profit-taking on Gold longs after the recent rally spurred by Fed’s dovish policy stance while fresh core inflation numbers surprisingly weakened for the first time this year, which added further to the dovish bias of the Fed.
Traders also keep an eye on Greece which has still not been able to bridge differences with its creditors, despite last-minute efforts to avoid a default. Talks on Greece will be held again on Monday after negotiations between Athens and the rest of the euro zone failed to end an impasse.
Gold Technical Levels
The metal has an immediate resistance at 1205.70 (June 18 High) and 1208.90 (May 26 High) levels. Meanwhile, support stands at 1195 below which doors could open for 1191.50 (May 13 Low) levels.