Spot gold prices continue to be weighed down by dollar strength following strong retail sales data out of the US, upbeat outlooks on the US economy from the Fed and no firm pointers towards further QE. The metal has struggled over the last week to gain a foothold back above $1700 and now sits below the 200 day MA currently around $1681.25. Asia saw Gold slide this morning from earlier highs of $1682.50 to $1670.85, but is holding above yesterday’s lows seen after the FOMC of $1662. The move lower is also seen on the back of a surge into equities as risk returned following Fed talk that the recent rise in inflation was temporary thereby reducing the safe haven attraction of the metal. Gold is currently trading around $1673 and support is now seen towards last night’s NY low and $1650. Resistance is initially at the 200 day MA at $1681.25 and the psychological $1700 level.
EasyForexNews Research Team