Spot gold is heading higher again this morning in Asia after posting strong gains in NY yesterday as optimism builds that the Greek cabinet will accept the austerity agreement finally drafted yesterday. The metal is consolidating gains in Asia this morning after a rise of around $40 from lows of $1710 in NY. Gold has edged up to $1751.60 in recent trade from early session lows of $1742.60, and is holding firm around $1750 ahead of the European open. The rise in Crude prices yesterday has also helped to underpin the move, along with falls in the US dollar index. Comments from Fed Chairman Bernanke yesterday that the overall US economy remains weaker than most realise despite the strong NFP data, are also contributing to the metal’s rise. The Euro is also assisting Gold, with the single currency currently receiving another leg higher on Middle Eastern demand at the time of writing. Today’s support is seen at $1742.60 and $1725 with resistance up at $1763.25 and $1779.50.
EasyForexNews Research Team