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Gold futures struggle near 5-year lows amid bearish chart signals

Published 21/07/2015, 15:41
© Reuters.  Gold languishes near 5-year lows
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Investing.com - Gold prices struggled near the lowest level since 2010 on Tuesday, as prospects of higher interest rates in the U.S. continued to weigh.

Gold futures for August delivery on the Comex division of the New York Mercantile Exchange inched up 40 cents, or 0.04%, to trade at $1,107.20 a troy ounce during U.S. morning hours.

A day earlier, gold plunged to $1,080.00, a level not seen since February 2010, before recovering to close at $1,106.80, down $25.10, or 2.22%.

Gold suffered most of its losses on Monday in a matter of minutes during early morning hours in Asia, as a bout of technical selling kicked in after prices broke below key support levels, triggering fresh sell orders amid bearish chart signals.

Prices of the precious metal have been under heavy selling pressure in recent weeks amid speculation the Federal Reserve will raise interest rates for the first time in eight years as early as September.

Gold, which yields nothing and costs money to hold, is seen as a less attractive investment during times of rising interest rates.

Also on the Comex, silver futures for September delivery tacked on 7.4 cents, or 0.5%, to trade at $14.83 a troy ounce, while copper for September delivery advanced 0.1 cents, or 0.05%, to trade at $2.483 a pound.

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