MTECHTIPS:-Gold pares losses after plunging to $1,080 during Asian session

MTECHTIPS:-Gold pares losses after plunging to $1,080 during Asian session

Gold prices plunged to a five-year low during early Asian hours on Monday, before trimming losses as investors returned to the market to seek cheap valuations. Gold futures for August delivery on the Comex division of the New York Mercantile Exchange hit an intraday low of $1,080.00 a troy ounce, a level not seen since February 2010, before recovering to trade at $1,115.20 during European morning hours, down $16.70, or 1.48%. Gold’s losses accelerated during early morning hours in Asia as a bout of technical selling kicked in after prices broke below a key support level close to the $1,120-level, triggering fresh sell orders amid bearish chart signals. Comex gold prices have been under heavy selling pressure in recent weeks amid speculation the Federal Reserve is moving closer to raising interest rates for the first time in eight years. Prices of the precious metal slumped $27.20, or 2.24%, last week, the fourth straight weekly loss, amid rising bets that a rate hike is coming in 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 slumped 6.6 cents, or 0.44%, to trade at $14.76 a troy ounce, while copper for September delivery shed 1.3 cents, or 0.51%, to trade at $2.483 a pound. Meanwhile, the dollar marched higher against its major counterparts as upbeat
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