Spot gold prices have slipped back in Asia this morning after making modest gains yesterday on the back of further profit taking in the USD. The metal has fallen back this morning $1664.65 to $1654.85 in recent trade having rallied to just short of $1670 in NY last night. Comments in Asia o/n from BHP that China’s normal massive demand for iron ore could be waning led a sharp fall in the AUD/USD which has weighed somewhat on Gold this morning. The metal however is underlyingly supported by talk of sovereign demand, including some hefty purchases apparently from the BIS last Friday. Crude oil prices are another bullish factor with Nymex WTI and ICE Brent both climbing on potential supply disruption fears as a result of Middle Eastern tensions in Iran and Syria, despite some assurances from Saudi Arabia that any shortfalls could be made up by them and existing global stockpiles. Gold is currently trading around $1657 and support today is seen at $1652.35 and $1640. Nearby resistance lies at yesterday’s NY high of $1669.90 and $1683.60 which is the current 200 day moving average.
EasyForexNews Research Team