Spot gold is trading around $1643 in Asia this morning after a somewhat whippy session yesterday that saw a range of $1631.25-1654.00. The metal however remains rangebound in a wider $1610-1680 bracket and has been weighed down in recent sessions as usual physical demand from India has failed to surface despite the impending Akshaya Tritiya Hindu festival. Talk that Syria is attempting to offload large amounts of its Gold reserves through the market to counter effects of sanctions has also added some weight to prices. On the flipside firming crude oil prices and concerns over Iran and possible QE3 in the summer from the US are adding some buoyancy, but traders are generally now looking for some fresh impetus before further involvement. Support today for Gold lies at $1631.25 and $1612.40 with resistance at yesterday’s high of $1654 and $1659.50.
EasyForexNews Research Team