Gold price drops on rate hike fears
New York (July 15) Gold prices fell to a session low of USD 1144.80/Oz, its lowest since March 16 after Fed chairwoman Yellen reiterated that the central bank is likely to raise interest rates "at some point this year".
Gold drop as USD strengthens
Yellen’s comments saw the USD strengthen across the board. The USD index currently trades 0.40% higher at 97.20. Consequently, the metal slipped below USD 1150/Oz to hit a session low of USD 1144.80/Oz.
Moreover, the USD strengthened even though there is nothing new in Yellen’s comments with regards to rate hike. Hence, it remains to be seen if the USD manages to sustain its gains. Meanwhile, the US stocks are trading with moderate gains, which could cap recovery in the metal.
Gold Technical Levels
The metal faces resistance at 1162.10 (June 5 low), above which prices could target 1172.60 (July 13 high). On the other hand, support is seen at 1142.00 (March low) and 1130 (2015 low).