Spot gold prices gave back marginal gains yesterday as the market lost risk appetite over delays in the Greek debt swap decision and widening spreads in the peripheral EU debt market, particularly in Portugal. Falls in equity markets led initially by bank shares, and softening crude oil prices, all acted to dampen demand, but Gold’s fall was seen more on the back of some light profit taking after a 7week high of $1741 seen in early asian trade. The metal then lost ground in Europe to $1716.50 before picking up later in the day again to close at around $1730. Asia has pulled the metal higher again as hopes build for an imminent solution to the Greek debt deal following comments from the Greek PM Papademos and other EU officials. The market reacted with a move up to $1737.60 ahead of the European open. Today’s support is at yesterday’s lows of $1716.50 and $1703.25 (Jan 26 low)with resistance at $1741 and $1756.30 (Dec 8 high).
EasyForexNews Research Team