Spot gold is heading lower this morning weighed down by fresh Eurozone concerns following rating downgrades by Fitch, Moodys and S&P of a number of sovereign european states. The metal has slipped down through yesterday’s lows of $1716.25 to $1715 this morning after opening the session in Asia at $1722.30. Traders are now eyeing a break of the $1700/10 support area, which could trigger a much sharper sell-off towards $1650. Gold may well be finding some peripheral support from the latest rise in crude prices, but further falls in the EUR/USD on the back of doubts over Greece’s ability to implement its agreed austerity measures are likely to take its toll on the metal price at the moment. As for today support is seen at $1704.70 and $1700 with a break there leading to $1681.50. Resistance is at $1722.75 and $1733. Gold is currently trading around $1715.50 as London opens.
EasyForexNews Research Team