Spot gold is trading around $1648.50 in Asia this morning after trading a $1641.40-$1659.50 range yesterday. The metal continues to be range bound with dip buyers surfacing on any falls under $1630 and resistance towards $1680 inducing sellers to emerge. Upside momentum now appears to be lacking despite the forthcoming physical demand expected with the Indian Hindu Akshaya Tritiya festival at the end of the month. Recent measures to impose an import levy on Gold by the Indian authorities has led to a slowdown in demand for the metal, but fears are now building that this may well lead to a revival in smuggling. China also continues to show insatiable demand for the metal despite itself producing over 360 tonnes last year, an increase of almost 6% from the previous year but still falling short of its consumption growth which totalled over 760 tonnes. Initial resistance today for Gold is at $1659.50 and $1670.00 with support seen down at $1642 and $1632.50.
EasyForexNews Research Team