Spot gold is lower in a relatively narrow range Wednesday as investors act cautiously in holiday-thinned trade, although concerns remain that a further sharp correction may be on the cards for the struggling precious metal.
At 1126 GMT, the spot price of gold was $1,587.45 a troy ounce, down $5.25, or 0.3%, on the day. While prices are up off their earlier lows following an encouraging Italian bond auction, market participants appear nervous on the short term outlook for the yellow metal given recent weakness in the market. The price of gold is down 9.1% on the start of December. The market–while likely to remain largely range bound until the New Year as many traders and investors remain absent for the holiday season–may be set for a further pullback after its failure to reclaim its 200-day moving average around $1,627/oz., analysts say.
EasyForexNews Research Team