Spot gold is trading around $1669.50 this morning, off from earlier highs of $1674.75 in early Asia following strong weekend release of the Chinese Mfg PMI data. The direction of Gold over the last week or so has largely been dictated by currency moves since the calming of EU debt fears, but the $1684-1690 area which hold both the 100 and 200 dma (at $1684.10 and $1689.60) continue to offers stout resistance ahead of the pyschological $1700 level. Support towards $1645 has recently contained any falls. the Indian government’s recent decision to impose import taxes on Gold has led to a drop in physical demand from the worlds leading gold buyers which has also added to the lack of upward momentum. With improved data also now coming out of the US, Swiss bank UBS has just cut its 2012 Gold forecast for Gold by 18% to average around $1680, against previous forecasts of $2050. For today, Gold has support at Friday’s $1659.80 low and $1645.25 with resistance $1675.00 and the 100 day moving average at $1684.10.
EasyForexNews Research Team