Spot gold prices are trading around unchanged levels Thursday, after prices declined sharply during yesterday afternoon’s session. Strong resistance was seen around the $1750 level and prices never recovered. $1725 provided an area of support on two separate occasions, once after the European equity cash closes and then again during Asian trading hours, with the level matching the 61.8% Fibonacci retracement of the move from $1710.42 to yesterday’s high of $1751.90. Gold has also been given some support by the euro, strengthened by hopes that a debt swap deal was finally going to come out of Greece, although sentiment has been slightly crimped this morning with wires reporting that no decision was Greece was to be delivered Thursday evening. Gold has largely spent the morning tracking FX pair EUR/USD, which earlier posted an intra-day high of $1.3313 before shunting moderately lower after the comment from German government official that there was to be no decision on Greece, now seen trading at $1.3282 up 21 pips. Spot gold is currently trading $1733.32, unchanged on the day.
EasyForexNews Research Team