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3 Aug 2015
Gold stuck near 5-1/2 year trough
FXStreet (Mumbai) - Gold trades few points above a 5-1/2-year low on Monday, struggling to take out USD 1100/Oz handle at the start of the month after its deepest loss in two years in July.
Rate hike expectations in the US caps gains
The resilience in the 2-year treasury yield and the flattening of the yield curve since last Wednesday indicates the rate hike expectations in the US are on the rise. Consequently, the gold sellers have repeatedly hit gold with fresh offers each time it neared USD 1100/Oz levels.
The metal lost almost 7% in July, its steepest monthly drop since June 2013. It fell for a sixth straight week last week, it’s the longest retreat since 1999. Investors are eyeing the US personal spending report due today and the monthly US nonfarm payrolls report on Friday. Strong data could add to the bearish pressure on Gold.
The metal currently trades largely unchanged on the day around USD 1094.20/Oz. Meanwhile, the USD index is trading flat around USD 97.40.
Gold Technical Levels
The immediate resistance is located at 1100, above which the metal could target 1104.90 (July 27 high). On the flip side, support is seen at 1088 (July 27 low) and 1073.70 (July 24 low).
Rate hike expectations in the US caps gains
The resilience in the 2-year treasury yield and the flattening of the yield curve since last Wednesday indicates the rate hike expectations in the US are on the rise. Consequently, the gold sellers have repeatedly hit gold with fresh offers each time it neared USD 1100/Oz levels.
The metal lost almost 7% in July, its steepest monthly drop since June 2013. It fell for a sixth straight week last week, it’s the longest retreat since 1999. Investors are eyeing the US personal spending report due today and the monthly US nonfarm payrolls report on Friday. Strong data could add to the bearish pressure on Gold.
The metal currently trades largely unchanged on the day around USD 1094.20/Oz. Meanwhile, the USD index is trading flat around USD 97.40.
Gold Technical Levels
The immediate resistance is located at 1100, above which the metal could target 1104.90 (July 27 high). On the flip side, support is seen at 1088 (July 27 low) and 1073.70 (July 24 low).