Spot gold prices raced higher yesterday after touching lows of $1649.15 in NY, following Fed Chairman Ben Bernanke’s reiteration that US Interest rates would stay close to zero until possibly the end of 2014. The announcement led a recovery, but the real spur was hints that QE3 was likely soon, possibly even at the next FOMC meeting. This sparked a huge risk rally in equities, the euro and commodity sectors, leaving the dollar floundering across the board. Gold screamed higher through $1700 to $1713.10 before closing out the day at $1710.60 and has since consolidated above $1700 in a quiet Asian session trading. The metal edged up to $1713.85 in early trading before slipping back to $1705.90 and currently sits around $1710.50 ahead of the European open. Initial resistance is now seen towards $1724.10 and then $1756.30 support rising towards $1685 and $1661.50.
EasyForexNews Research Team