Gold drops ahead of the US non-farm payrolls report

FXStreet (Mumbai) - Gold has extended losses for the fourth consecutive session as investors ditch the precious metal as the payrolls report in the US is likely to show the labour market continues to strengthen.

Gold trades at one-month low

The metal currently trades around USD 1165.5/Oz, its lowest level since the first week of June. The metal has fallen despite the Greek crisis. Losses continued on Wednesday even after Greece defaulted on its IMF loan repayment.

Watch the NonFarm Payrolls Live Coverage with Valeria Bednarik and Dale Pinker

Moreover, the rate hike bets in the US are weighing over the metal and other safe haven metals like the US treasuries. The Non-farm payrolls report for June is expected to show the economy added 230K jobs, compared to the 280K additions seen in May.

Gold Technical Levels

The immediate support is located at 1162.8 (June 5 low), under which losses could be extended to 1147.6 (Mar 11 low). On the flip side, a break above 1168.6 (June 26 low) could see the metal re-test 1175.00.

Credit Suisse: US NFP expected at 240K - eFXnews

According to Credit Suisse, the US June nonfarm payrolls is expected to see a robust 240K gain and USD will remain bid against EUR and AUD, as noted by eFXnews.
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