Spot gold is holding steady around $1650 this morning but off early highs in Asia of $1656.50 after a weaker than expected Chinese PMI release , which saw aussie-dollar kicked sharply lower on fears of a slowdown in the Chinese economy. Bargain hunters continue to prop up dips in the low $1640’s, but as the spectre of QE3 remains temporarily on the back burner upside momentum is sluggish and recently improved data from the US continues to take the shine off the metal, despite reports of sovereign buying. Comments yesterday from Fed Chairman Ben Bernanke failed to spark any real enthusiasm with traders and the metal now appears to be caught in a $1642-1670 trading range for the time being. Today’s support is seen towards $1646.60 and $1641.50 with resistance up at $1662 and $1670.
EasyForexNews Research Team