Spot gold prices moved higher yesterday aided by higher crude oil prices amid a general” risk on” trading day and a broader rise in the commodity sector. Comments from the GFMS also helped sentiment with expectations of $2000/oz forecast for H2 2012 or early 2013 on the back of global economic concerns. Physical buying has also picked up along, with new demand from sovereigns such as Mexico and Korea. The metal opened yesterday at $1643.70 and climbed sharply in Asia and Europe to $1667.70 before easing back in NY to $1650.35. A small rally was seen into the close at $1652.10. Asian markets this morning saw an initial dip back to $1643.90 before jumping back up to $1658. The metal currently sitting around $1656.50 ahead of the European open. Support today is at yesterday’s lows of $1642 and $1631.50 with resistance at $1667.70 and $1678.25.
EasyForexNews Research Team