Spot gold has pushed up sharply in Asia this morning on the back of an agreement at last to the EU/Greek debt deal which has lingered for so long. The metal touched highs of $1742.95 in recent trade after opening the session in Asia at $1735.05. Some analysts are now looking for a break out higher, with Barclays Capital looking for the metal to average $1875 in the coming year on the back of responsive physical demand and a broader positive external environment, citing negative real interest rates, currency debasement concerns and inflationary pressures. Rising tensions between the West and Middle East over oil delivery will likely add further impetus to the metal’s price. The market however is currently lacking the recent demand from fund managers, and latest CFTC data points to a cut in net longs by money managers of around 6% over the latest week, which is the 1st decline for some 5 weeks. The metal is holding firm around $1742 as Europe opens and resistance today is seen at $1752.60 and $1763.25. Near-term support now rises to $1735
with a break down there pointing to $1717.25.
EasyForexNews Research Team