7 Jul 2015
Gold recovers losses, treads water ahead of Euro Summit
FXStreet (Mumbai) - Gold prices on Comex halted its downward rally and recovered losses in the European session, as markets remain on the defensive side with main focus on Greece update from the Euro group meeting, while strengthening US dollar caps the upside.
Gold bounces-off 1165.50
Currently, gold trades modestly flat at 1166.60, oscillating a slim range. Gold prices keep both the sides capped as markets remain cautious ahead of the outcomes of the Euro Summit on Greek bailout.
While traders are more concerned about the Federal Reserve's (Fed) upcoming rate hike as well as a strong greenback on the back of risk-off trades. The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, trades 0.68% higher at fresh 5-week highs of 97.12.
Moreover, the deepening rout in Chinese stock markets, despite the latest government measures, also dented the gold prices.
Gold Technical Levels
The metal has an immediate resistance at 1170 and 1175 levels. Meanwhile, support stands at 1161.90 below which doors could open for 1155.80 levels.
Gold bounces-off 1165.50
Currently, gold trades modestly flat at 1166.60, oscillating a slim range. Gold prices keep both the sides capped as markets remain cautious ahead of the outcomes of the Euro Summit on Greek bailout.
While traders are more concerned about the Federal Reserve's (Fed) upcoming rate hike as well as a strong greenback on the back of risk-off trades. The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, trades 0.68% higher at fresh 5-week highs of 97.12.
Moreover, the deepening rout in Chinese stock markets, despite the latest government measures, also dented the gold prices.
Gold Technical Levels
The metal has an immediate resistance at 1170 and 1175 levels. Meanwhile, support stands at 1161.90 below which doors could open for 1155.80 levels.