Gold hits fresh session lows near $ 1188

FXStreet (Mumbai) - Gold prices on Comex accelerated losses below 1190 levels in the European session, largely on the back of a strong rebound seen in the US dollar versus its major peers ahead of key US ADP non-farm employment change data which hat may hint more about the anticipated Fed rate hike.

Gold trades below $ 1190

Currently, gold trades -0.55% lower at fresh session lows of 1187.80. Gold fell sharply in to losses after the USD bulls jumped back into bids after a brief reversal seen in the previous session. The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, trades 0.26% higher at 96.25, retreating from fresh session highs reached at 96.34.

Moreover, reflecting lack of investors’ confidence in the yellow metal, holdings in the SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, declined to 709.89 tonnes on Tuesday, the lowest since January.

Markets will now focus on a fresh set of US macro releases including the key ADP employment figures which may provide fresh incentives on the precious metal. The ADP employment report, the forerunner ahead of Friday's non-farm payrolls, is expected to reveal a figure of 200,000 for the month of May, after 169,000 in April.

Gold Technical Levels

The metal has an immediate resistance at 1195 and 1200 levels. Meanwhile, support stands at 1184 below which doors could open for 1180 levels.