FXStreet (Mumbai) - Gold prices erased gains to trade lower on the day at USD 1169.30/Oz as news of Greece nearing a deal triggered a rally in the riskier assets, pushing the US dollar higher across the board. Gold faces the double whammy of risk-on and strong USD The US dollar is being pushed higher as a risk currency, since the Fed, due to strong domestic economy, is nearing an interest rate hike. A solution to Greece crisis only brings Fed one step closer to a lift-off from record low interest rates. Consequently, the metal is facing a double whammy of increase in the risk appetite and the strong Us dollar. The increase in the risk appetite has pushed the US stocks moderately higher and the 10-year Treasury yield to a two week high, thereby adding to the bearish pressure on Gold. Gold Technical Levels The metal currently trades at USD 1170.40/Oz. The immediate support is located at 1168.9 (June 7 low), under which the prices could drop to 1162.5 (June 5 low). On the flip side, a break above 1174.5 (June 17 low), above which the prices could re-test the daily high of 1178.7.

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