Gold price drops to lows near $1,170

San Francisco (Jun 24)  The troy ounce of the precious metal has left recent tops above the critical $1,200 handle and is now testing the $1,180/75 band.

Gold softer on EU-Greece deal

The increasing optimism on a potential deal between Greece and its EU creditors hurt the demand for the safe have yellow metal today, prompting sellers to step in and drag Gold back from last week’s peaks in the $1,205 area.

The irruption of buying interest around the US dollar kept Gold-bulls at bay throughout the session, who saw an opportunity to come back in response to poor releases in the US economy, although the attempt was proved to be short-lived after Fed’s Powell struck a hawkish tone in his speech.

Gold significant levels

As of writing Gold is down 0.65% at $1,176.30 and a drop below $1,173.90 (low Jun.17) would open the door to $1,171.90 (low Jun.15) and finally $1,162.10 (low Jun.5). On the upside, the immediate resistance lines up at $1,209.00 (high May 25) followed by $1,215.30 (high May 22) and then $1,219.40 (high May 13).

Source: FXstreet