Spot gold is trading around $1542.50 in Asia this morning after a relatively flat end to last week with the metal trading a $1638.65-1647.35 range on Friday. There is little to stimulate direction at the moment with little of note from the G20 at the weekend as trader’s now look towards the forthcoming Fed statement. Recent moves have been dictated largely by equity direction and the dollar movements. Fears that the Eurozone economy may deteriorate after the French elections and a break down over the weekend in Dutch austerity budget talks has prompted an emergency cabinet meeting and could threaten the country’s AAA status which could weigh on prices as the dollar gains strength from recent improvements in the US economy .On the positive side Gold physical demand is now starting to pick up from the likes of India who celebrate the Hindu Akshaya Tritiya festival. Today’s support is at Friday’s lows of $1638.65, and $1631.25. Resistance is at $1647.35 and $1654.00 .
EasyForexNews Research Team