Gold drops in Asia as dollar index strengthens

Gold is losing height in Asia as increased demand for safe haven treasuries strengthened dollar index.

Rejected at $1333

Prices fell from a high of $1333 to trade around $1328/Oz levels. Lift after Brexit appears highly uncertain especially in Europe due to which investors are running for cover under the US treasuries, which at the moment also offer a considerably high yield compared to its European peers.

Consequently, dollar index advanced 0.90%. Gold thus dropped from Asian session high of $1333. Ahead in the day, safe haven appeal gold could strengthen if European equities drop on heightened political uncertainty.

Gold Technical Levels

Acceptance above $1358 (previous day’s high) would expose $1380 (38.2% of 2011 high-2015 low). Further gains could be met with resistance at $1400. On the downside, breach of $1315 (June 16 high) would shift risk in favor of a drop to (zero figure) and $1288 (5-DMA).