Spot Gold prices have advanced in London this morning, after the market yet again failed at its attempt to consolidate above $1625 yesterday. Prices slipped back after the European equity cash closes yesterday to trade down to $1606.55, with that area now deemed as a short-term support level. Gold prices edged their way higher during this morning’s Asian session, and have now extended their gains to an intra-day high of $1628.38, with prices currently trading $1627.25 up $15.80 on the day (0.98%). Gold appears to be trading in tandem with a
positive European equity session, with European bourses currently trading over 2% higher, as risk assets begin to resume their rally after a flat few days. The U.S. dollar (USD) is in modest negative territory in the FX market, with EUR/USD prices recovering to a high of 1.2808, now seen at 1.2797. There may be some additional downside USD correction over the next few trading sessions, as USD funding pressure across Europe appear to have slightly eased. An improvement on front end peripheral yields are also squeezing short EUR/USD positions.
EasyForexNews Research Team