Spot gold is trading around $1623.50 in Asia this morning in quiet trade ahead of the long weekend. The metal suffered another sharp fall yesterday as risk off sentiment grew in Asia and Europe on concerns over Spain, and was compounded by a poor Spanish bond auction and comments from ECB’s Draghi. Further comments from the US that QE3 now appears to be off the menu has taken the shine of Gold this week and the metal dipped another $35 yesterday to add to the $42 it lost on Tuesday following the release of the FOMC minutes. Gold hit lows of $1612.40 in NY yesterday which now forms the first level of support. A break here points down to the $1605/1600 levels which should hold stronger demand. Resistance is seen up at $1636.25 and $1648.10.
EasyForexNews Research Team