Spot Gold prices eased back marginally yesterday as some profit taking emerged after the metal hit week’s highs of $1670.25 in Europe. The metal opened in Asia at $1660 building higher on some risk on sentiment ahead of Spanish and French bond auctions, where the market pre-empted the strong demand. Comments from ECB’s Draghi and strong jobless claims out of the US helped to keep the EUR and risk sentiment positive, but this failed to stop some paring back of Gold longs and the metal eased back to $1649.32 from the highs before picking up into the close at $1658.15. Asian markets have been steady if a little non-commital this morning ahead of the Chinese New year celebrations beginning on Monday, with Gold trading a $1653.50-$1658.30 range ahead of the European open. Support is now seen towards $1642.75 and $1631.50 with resistance at yesterday’s highs of $1670.25 and $1678.25.
EasyForexNews Research Team