Gold prices traded below $1200 in Asia on Wednesday as all look ahead to Greece and its willingness to ink a deal with creditors to avoid missing sovereign debt payments at the end of the month.
In Athens, Greece prime minister Alexis Tsipras was scheduled to brief leaders of the leftist Syriza government on Tuesday evening ahead of a meeting on Wednesday with Germany chancellor Angela Merkel and France president Francois Hollande in Brussels. Gold is considered a safe-haven for investors in periods rife with economic uncertainty.
Meanwhile, metal traders continued to digest optimistic U.S. jobs data last week that could increase the possibility that the Federal Reserve will raise interest rates by September.
Traders were also waiting for U.S. retail sales data due on Thursday for clues about the strength of the economy and how that will affect the Federal Reserve’s monetary policy.
In upcoming days, we can expect Gold futures prices to trade on negative note. Technically, If COMEX Gold breaks the level of $1170 then it can test the level of $1140 and $1100 on downside. If MCX Gold August futures sustains below the levels of 26750 on downside then bearish movement can be seen till the levels of 26575 and 26390.
By Vivek Gupta, CMT – Director Research, CapitalVia Global Research Ltd.