FXStreet (Mumbai) – Gold prices are trading in the sideways manner around USD 1085/Oz levels ahead of the US GDP data and initial jobless claims.
Gold: Will it extend losses?
The fate of the yellow metal depends on the US GDP figure. The markets believe the Fed is well on track to raise rates this September, which is evident from the uptick in the treasury yields and the US dollar. Consequently, an upbeat GDP (expected 2.5%) would only add to the rate hike bets and push the metal lower.
Moreover, the rate hike bets could drop significantly only if the data is weak enough to challenge the Fed’s upbeat view of the economy. Meanwhile, the jobless claims could also play a small part in influencing the yellow metal.
Gold Technical Levels
The immediate support is seen at 1073.10 (July 24 low), under which the prices could extend the drop to 1050.00. On the other hand, resistance is seen at 1098.40 (hourly 200-MA) and 1105.00 (July 27 high).
Gold prices are trading in the sideways manner around USD 1085/Oz levels ahead of the US GDP data and initial jobless claims.
(Market News Provided by FXstreet)