Opened in Asia this morning at $1776.45 after hitting 2012 highs of $1781.80 in NY last night. The metal is currently consolidating the strong gains yesterday from lows of $1749.30, and looks set to test the $1800 level despite a small drift lower this morning to $1772.30. There is talk of some $1800 option expiries today which, if large enough, may well trigger some magnetism towards the cut at 1500GMT. The move yesterday has puzzled some analysts as there has been no notable demand from hedge funds, but the view remains that the more QE/bond purchase programs put into effect, the more Gold remains an attraction. The run up from $1750 was more likely to be technical with some weak shorts reportedly stopped out, but the mood remains a positive one, especially amid the Middle Eastern tensions over Oil, which is also consolidating above $100. Today’s support is seen towards $1749.50 and $1736.75 (21 day MA) with resistance at $1800 and $1816.70
EasyForexNews Research Team