Spot gold prices are slipping back again this morning after highs just short of the psychological $1700 level prompted some profit taking following Bernanke’s comments on Monday which sparked a sharp rally. The metal logged a high yesterday of $1697.25 before easing back to close at $1680.70, under the 100 and 200 day MA both around $1687.50. Further slippage has been seen this morning in Asia as AUD/USD is pressured by some heavy cross selling, and copper falls ahead of today’s US Durable goods data. Gold has eased back from early highs of $1682.15 to $1676.35 in recent trade. Some concerns are also entering the market over a China slowdown and weakening demand from the country, together with India’s new ruling that import duty would be applied to Gold and platinum which has temporarily dampened demand. Gold currently trades around $1678.70 and support today is seen at $1655.70 and $1642.25. Resistance remains at yesterday’s high of $1697.25, with a break there and through $1700 leading up to the March 13 highs of $1705.60.
EasyForexNews Research Team