Gold keeps range circa $ 1161, Greece headlines watched
New York (July 10) Gold prices on Comex extends its gradual ascent from Asia and keeps mild gains in the mid-European session as broad based US dollar weakness continues to support the yellow metal. However the upside remains capped as markets digest latest Greece news flow.
Gold rises despite easing Greece fears
Currently, gold trades 0.22% higher at 1161.80, having posted day’s high at 11163. The yellow metal traded slightly higher on Friday as the US dollar weakness paved the way for gains, but the upward trend was limited as optimism over China and Greece returned to the market.
The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, trades -0.94% lower at 95.76.
Euro zone finance ministers are due to meet on Saturday to discuss the plan before a special European Union leaders summit on Sunday, which was set as the deadline for reaching an agreement with Greece. Moreover, the stock market rebound in China curbed demand for gold as a safe haven as traders pumped their money into riskier assets such as equities.
However, in an evidence of lack of investors’ confidence in the yellow metal, outflows from the SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, continued on Thursday as holdings slid to 707.58 tonnes.
Later today, in absence of any macro releases in US, markets will now focus on Fed Chair Yellen’s speech for further USD moves.
Gold Technical Levels
The metal has an immediate resistance at 1165 and 1170 levels. Meanwhile, support stands at 1155 below which doors could open for 1150 levels.