Spot gold prices have recovered marginally this morning Asia after dipping on Friday to $1704.65 in NY. The pair did however manage to close at $1722(above the $1710 level which analysts point to as pivotal for the uptrend to continue) and has risen again this morning on the back of an higher EUR/USD and oil prices as the Greek austerity measures were passed and hopes of a Greek default/euro exit diminish. The metal has since climbed to $1731.50 in recent trade this morning. Weekend comments in the UK Telegraph from billionaire investor Warren Buffet that Gold was a “self-inflating bubble created by investors desperate for a viable alternative” and was a “valueless asset” has so far failed to dampen traders enthusiasm for the metal. Coutts in contrast, now see the metal posting fresh all time highs in 2012. Support for gold now lies towards $1720.30 and $1704.65 with initial resistance seen up at Friday’s highs of $1734.90 and $1752.60.
EasyForexNews Research Team