Spot gold has been fairly steady in Asia this morning but is struggling to break through yesterday’s $1787.50 highs despite a strong run up in crude oil prices and a resurgent AUD/USD this morning. The metal has slipped back from highs of $1782.20 to $1775.10 in quiet trading, but remains on a firm footing as central bank demand and investor appetite remains steadfast. This week has seen some technical short covering which ramped the price back up through $1750 on Tuesday and the trend remains intact despite this morning’s slippage. Schroder investment management are now looking for Gold prices to rise in 2012 to possibly $2500 with the bull run set to continue for another 5-8 years. Holdings in exchange traded products backed by bullion are now close to all time highs according to Bloomberg. Support for the metal today is seen at $1772.80 and $1749.35 with resistance at yesterday’s highs of $1787.50 and the psychological $1800 level which is also likely to attract option related interest. Gold currently trades around $1777 ahead of the European open.
EasyForexNews Research Team