Gold price turns positive ahead of Fed minutes
New York (July 8) Gold recovered earlier losses to trade with almost 0.5% gains on the day ahead of the release of the Fed’s June monetary policy minutes.
Gold: Safe haven demand back?
The metal has recovered from the low of USD 1146.20/Oz seen in the early European session, even though nothing much has changed with respect to Greece and/or China since then. The metal has paid no attention to these factors since the beginning of the week, raising questions whether the metal has lost its charm as a safe haven asset.
It may be too early to attribute the current recovery to the spike in safe haven demand. A technical correction could be the reason behind the recovery as all other fundamental factors are more less unchanged.
A weak opening on the Wall Street could add to the ongoing technical recovery. Meanwhile, the investors would also watch out for indications of a rate hike in Fed minutes. It would be interesting to see if the policymakers cheer the rebound in the second quarter or put more emphasis on the turmoil in the global economy.
Gold Technical Levels
The metal currently trades around 1162/Oz. The immediate support is located at 1142.40, under which the metal could drop to 1130.40 (Nov 2014 low). On the flip side, a break above 1162.10 (June 5 low) could see the metal target 1170.00 (April low).