Gold stuck below $ 1160, uninspired by China-led risk-off

FXStreet (Mumbai) - The yellow metal appears to have lost its shining status as a safe-haven asset on Monday as weak Chinese economic data and traders fleeing equities across all of Asia and Europe failed to boost the safe-haven bids for gold.

Gold corrects lower from 1164 highs

Currently, gold trades -0.14% lower at 1158.10, keeping the same range since late-Asia. The yellow metal was the worst performers amongst the safety assets as traders resorted to profit-taking after gold prices once again failed to surpass 1165 levels.

Moreover, with the Chinese concerns gaining momentum, the US dollar remained depressed on risk-off sentiment on Monday, while equities are being dumped in favour of the safe-havens such as yen and euro.

Meanwhile, the US dollar index, a virtual gauge of greenback’s strength, trades -0.67% lower at 94.19.

Gold Technical Levels

The metal has an immediate resistance at 1171.50 (July 7 High) and 1180 levels. Meanwhile, support stands at 1152 (Today’s Low) below which doors could open for 1148.50 (July 8 Low) levels.

EUR/USD: Bulls storm higher to 1.1500

The shared currency regained lost ground completely and jolted higher versus the US dollar in the European morning, with EUR/USD kissing 1.15 barrier. The bid tone around the main currency pair keeps growing bigger as European markets join the global sell-off, bolstering the safe-haven bids for the euro.
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Firmer euro drives EUR/GBP beyond 0.7300

Broad based euro strength bolstered by rising safe-haven demand drove the EUR/GPB cross higher beyond 0.7300 levels during the European session. While lowest oil prices since 2009 threaten the UK's mining and energy sector keeping the pound largely undermined.
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