Spot Gold is consolidating Friday’s gains trading having closed in NY around $1662. This morning saw a blip higher with early EUR/USD strength in reaction to an article in Der Spiegel that Germany may relax its resistance to a firewall increase in the ESM/EFSF. The metal pushed higher to $1669.65 before easing back to $1660.70 later settling around $1664.00 ahead of the European open. The rally into the close last week was seen following a spike in Crude oil prices on the back of talk that Iranian exports may well prove to have fallen by as much as 300,000 barrels per day during March according to Petrologistics in Geneva. Gold remains in a somewhat neutral phase at the moment with analysts looking for a move up through $1670 and the 200/100 day MA’s currently at 1686.05 and $1689.35 to potentially target the bigger $1710 level. Downside support is seen towards $1642.25 with a break there pointing down to $1628.20 seen last Thursday.
EasyForexNews Research Team