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3 Aug 2015
Gold drops after US consumer spending report
FXStreet (Mumbai) - Gold prices dropped into losses on Monday after the data in the US showed personal spending rose at a lower pace in June.
Stuck near 5-1/2 year lows
The metal is struggling near 5-1/2 year lows as markets believe the Fed is on track to raise interest rates in September. The official data released today showed personal spending growth slowed to 0.2% in June. The report also included downward revisions to the previous month’s personal spending and income figures.
Still, the Treasury yields have remained more or less unchanged, indicating the slightly dismal data has not had any effect on the rate hike bets in the US. Moreover, the personal spending has ticked higher in Q2, compared to the slowdown seen in Q1.
The metal currently trades 0.48% lower at USD 1089/Oz. Ahead in the day, the prices could be influenced by the US ISM manufacturing index and the sentiment on the Wall Street.
Gold Technical Levels
The immediate resistance is located at 1100, above which the metal could target 1104.90 (July 27 high). On the flip side, support is seen at 1088 (July 27 low) and 1073.70 (July 24 low).
Stuck near 5-1/2 year lows
The metal is struggling near 5-1/2 year lows as markets believe the Fed is on track to raise interest rates in September. The official data released today showed personal spending growth slowed to 0.2% in June. The report also included downward revisions to the previous month’s personal spending and income figures.
Still, the Treasury yields have remained more or less unchanged, indicating the slightly dismal data has not had any effect on the rate hike bets in the US. Moreover, the personal spending has ticked higher in Q2, compared to the slowdown seen in Q1.
The metal currently trades 0.48% lower at USD 1089/Oz. Ahead in the day, the prices could be influenced by the US ISM manufacturing index and the sentiment on the Wall Street.
Gold Technical Levels
The immediate resistance is located at 1100, above which the metal could target 1104.90 (July 27 high). On the flip side, support is seen at 1088 (July 27 low) and 1073.70 (July 24 low).