Spot gold prices are under pressure again this morning in Asia slipping to recent lows of $1658.35 from early highs of $1665. The move seen as an extension of yesterday’s drop from $1684.60 as dollar strength picks up and concerns over China weigh on sentiment. The metal was also dragged lower by falling oil prices amid talk of release of strategic reserves to combat any supply shortfalls as a result of the Iranian sanctions. Aussie-dollar’s fall this morning has added further downside pressure on the price of Gold. Losses do appear to be contained however by underlying fears that the US may yet introduce more quantitative easing in the not too distant future and dips do continue to attract bargain hunters. Support today is seen at $1654.80 and $1642.25 with resistance at $1684.60, $1688 (200dma) and $1697.25. Spot gold currently trades around $1658.80.
EasyForexNews Research Team