Spot gold had a bit of an indifferent day yesterday which has left the metal lagging the risk appetite seen elsewhere. Equity markets soared following strong Spanish auctions amid improved forecasts for global growth from the IMF. Gold failed to keep up with the rally in US crude, closing fractionally lower on the day around $1649.60 from opening levels of $1652. Asian markets this morning have been steady with the metal edging up to $1653.50 and may be slightly underpinned by comments from the BOK’s reserve management chief who stated that Gold’s importance as a reserve asset is growing. Traders however continue to show a degree of caution ahead of next week’s policy meeting from the Federal Reserve. Today’s support is seen at yesterday lows of $1634.65 and $1632.50 with resistance at $1659.60 and $1670. Gold is currently trading around $1652.00 ahead of the European open.
EasyForexNews Research Team