Thursday, July 16, 2015

Gold Extends Losses, 4-month Low in the Cash Market

Gold extended losses in the last trading session due to hawkish comments from Federal Reserve Chair Janet Yellen which turned out to be bearish for the yellow metal. Amid improving U.S. economy Yellen said the Federal Reserve is on the path to raise interest rates this year. The U.S. dollar index rallied on Yellen's remarks which was also a factor impacting the falling Gold prices.

Another reason for the rally in U.S. dollar index is the tottery Greek developments which could lead to global systemic risk and the uncertainties in the Chinese stock market.

Gold is currently trading in the range between $1,143 - $1,148 with market sentiment favoring the bear side of the trade.

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