Spot Gold prices fell back sharply yesterday on the back of broad based dollar strength prompted by an array of worries in Europe, and China, with Comex futures losing almost $45 at one stage. Some technical damage has now been done to the long term bullish outlook, with talk that hedge funds have been the major sellers of late on the back of poor performances which has forced them into liquidating some long positions. The move lower was also compounded by a sharp drop in Nymex crude prices as the US pledged to use the 5th Fleet based in the Persian Gulf to maintain access through the Straits of Hormuz. Spot Gold opened yesterday at $1593 and hits lows of $1549.80 in late NY trade, before closing at $1556.90. Asian markets attempted a rally which fizzled at $1561.60 before heading lower again to the NY low. The metal has since balanced around $1554 ahead of the European open. Today’s support is seen towards $1533 and $1525 with resistance at $1593 and $1600.
EasyForexNews Research Team