Spot Gold fell to multi-month lows yesterdays as the EUR/USD hit 2011 lows as long liquidations continue into the year end. Investors have been seen turning out of the metal in preference for equities with several fund managers apparently leading the way. The metal fell from highs in early asia of $1561.60 to $1522.75 before a late recovery to close at $1545.80. Talk of some sovereign bids set ahead of $1500 deterring further falls, but the close this week will be vital for a clue to a continuation of the recent downtrend. Asian
markets this morning have seen another attempt to rally the metal to $1559.80 with the market currently just below the level into the European open. Today’s support is seen at yesterday’s low of $1522.75 with resistance at $1593.
EasyForexNews Research Team