Spot gold has headed down in Asia this morning weighed by ongoing Greek debt concerns, Moody’s announcement that it was reviewing 17 major global banks, weaker equities and a general risk off sentiment following last nights dovish FOMC minutes. The metal has slipped from $1728.20 at the close in NY last night, to $1717.15 in recent trade and further falls could threaten key support in the $1700.1705 area. A break here targets the 100 day MA at $1682.70 ahead of the 200 day MA at $1661.80. Positive factors for the metal are that China now looks to surpass India as the world largest buyer of Gold this year according to research from the World Gold Council, and with investment demand remaining strong and increasing by around 5% per annum this should help to underpin prices. Robust physical demand from across Asia is also assisting to shore up the metal. Today’s support is seen at $1712.25 and $1704.70 with resistance at $1737.50 and $1752.60
EasyForexNews Research Team