Gold price slumps to $1,130

San Francisco (July 17)  Prices for the precious metal have dropped to multi-year levels around $1,130 per ounce on Friday, trading in levels last seen in March 2010.

Gold hurt by rumours, USD

According to experts, a large seller could be behind today’s steep decline, increasing the negative streak to seven sessions. In addition, the PBoC has reported its gold reserves for the first time in nearly six years, which reached 53.32 million ounces, much below market consensus.

Adding to the downside, the re-emergence of the buying interest around the US dollar kept the demand for USD-denominated assets heavily subdued.

Gold levels to watch

At the moment Gold is losing 1.04% at $1,132.00 with the next support at $1,111.30 (low March 2010). On the upside, the initial resistance lines up at $1,174.88 (high Jul.6) followed by $1,178.70 (high Jun.26) and then $1,188.20 (high Jun.29).

Source: FXstreet