Spot Gold prices started a recovery last Friday after a sharp fall to $1522.75 on Thursday as the EUR/USD broke down through $1.2900. The end of the year saw the metal pick up from $1545 to $1581.60 before closing out the year around $1565. On the year Gold posted gains of over 10% despite the falls from the September 6 highs of around $1921. Asian markets have seen further gains this morning as the metal tracks equities and crude oil higher in some risk-on sentiment buoyed by strong PMI data out of China, India and Australia. The spot has lifted to $1589.85 in recent trade. Resistance ahead is seen at the psychological $1600 level with a break there opening a move back up towards $1641.90. Support is towards $1563.80 and $1552.65. Possible further QE from the Fed and ECB is keeping many analysts on a bullish outlook for the Gold in 2012 with some safe-haven attraction also remaining over the EU debt crisis, along with physical demand from China and India.
EasyForexNews Research Team