Spot Gold prices picked up on Monday largely reversing the slide of Friday following the EU downgrades in a generally quiet market with the NY market closed in observance of Martin Luther King Day. The metal picked up on firming oil prices and equities. Gold opened at $1639.50 in Asia yesterday and after early falls to$1631.50 picked up steadily to $1647.05 before closing out the day at $1643.70. Asian markets this morning have seen further gains with the metal tracking some rise in risk appetite, spurred by a stronger than expected Q4 GDP data out of China (8.9% vs a market consensus of around 8.7%). Gold has rallied up to $1659.75 in recent trade and faces near term resistance at Thursday’s high of $1662.15 with a break there allowing a further rally towards the Dec 13 highs of $1678.25. Support now rises to $1636.20 with a break down there pointing back to Friday’s lows of $1625.50
EasyForexNews Research Team