Spot gold prices have been relatively stable in Asia o/n with the metal trading a $1718.80-$1727.35 range and consolidating near the higher end of the range ahead of the European open. Traders are now positioning ahead of the impending Greek debt decision as the government delays yet again. Failure to agree a deal is now ever likely to send Greek into default, but some stability was brought to the markets after Merkel’s comments yesterday that a default would be unacceptable, and that a sustainable Greek finance was imperative for the 2nd bailout. The metal is also gaining general support on monetary easing hopes in the world’s major economies, and has settled after Friday’s sharp falls following the strong NFP release. India and China continue to pick up gold on dips and the longer term bullish trend remains intact on daily closes above $1700. Support today comes in around $1712 (Mon lows) and $1703 with resistance at $1735.40 and $1750. Spot Gold is currently trading around $1725.50
EasyForexNews Research Team