Gold rises as dollar surrenders some gains
Following its drop over the previous two weeks, gold prices found some ground on Monday to rise to $1200 an ounce. However, the gains may be limited as it may face psychological resistance at this level.
The dollar index, which tracks the green currency’s movements versus basket major currencies, retreated from near six-week high of 97.57 to hover around 97.38.
The greenback may face some sell off ahead of the release of the jobs report, yet manufacturing and personal income data will probably weigh on the dollar’s trades.
U.S. employers probably added 225,000 jobs last month, following an increase of 223,000 in April, according to median forecasts.
An interest rate hike will occur this year if the economy shows progress, Fed Chairwoman Janet Yellen said on May 22.
While the current Greek woes are not having a strong impact on gold prices, a failure to meet debt obligation to the IMF due on June 5 may boost haven demand on gold.
Technically speaking, the rise in gold prices have been buoyed by the climb above this week’s pivot point located at $1193.
Yet, prices faced resistance from the previously breached support line, which now has turned into resistance.
The RSI 14 momentum indicator also faced pressure as it approached the 50-cemter line.
Gold may fluctuate between key support at $1177 and key resistance at $1205.
Among other precious metals, platinum rose to $1,113 an ounce, palladium inched down $775.11 an ounce and silver climbed to $17.04 an ounce.