Spot gold continues to push higher with the general risk appetite ahead of today’s ECB LTRO operation, rising in Asia this morning to just clip past yesterday’s highs of $1790.20 to $1790.50. Further monetary easing is fueling the metal’s rise to 3 month highs as the spectre of inflation looms and heightens safe haven attraction. Silver also put in strong gains yesterday, and has tracked Gold higher in Asia this morning rising to just shy of yesterday’s $37.224 high. Both metals remain poised to test higher levels particularly if the ECB LTRO injection comes in higher than the predicted half a trillion euros. The move higher is also seen on the back of a weaker dollar index, despite yesterday’s sharp fall in crude oil prices (which are also recovering this morning in Asia). Gold support today comes in at $1776.40 and $1765.90 with resistance ahead at the psychological $1800 level and $1816.50. Silver support is at $35.90 and $35.40 with resistance at $39.72 and $40.69. The metals currently trade around $1788 and $37.12.
EasyForexNews Research Team