Gold retreats in Asia as Japan stimulus bets drop

Gold prices retreated in Asia as Kuroda’s comments led to a drop in Japanese fiscal stimulus bets at a time when Fed rate hike bets are on the rise.

Rejected at $1333

Prices turned lower from the high of $1333/Oz as Yen failed to respond to reports that a discussion on fiscal stimulus is underway in Japan. Moreover, the ‘reflation trade’ was hurt by Bank of Japan’s (BOJ) Kuroda’s comments yesterday that helicopter money is unlikely in Japan.

Consequently, the yellow metal, which is usually the biggest beneficiary of debasement, dropped to a low of $1324/Oz levels. The economic calendar in the US is light, hence the metal is at the mercy of the broader market sentiment.

Gold Technical Levels

A break above $1335 (July 18 high) would expose $1355.60 (July 24 high), above which prices could test $1374.90 (July 6 high). On the other hand, a breakdown of support at $1322.70 (July 14 low) could yield $1315.50 (July 20 low). A break lower would expose psychological level of $1300.