Spot gold is trading around $1642 this morning Asia after another strong rally yesterday lifted the metal from $1634.15 to $1649.40 on the back of rising equities and strong earnings from US companies including Apple. Trading volumes have been noticeably lower ahead of the 2 day FOMC starting today, but the metal is struggling to break significantly higher as US economic outlook improves and chances of further Fed easing recede. The Indian Akshaya Tritiya festival has failed to produce the usual spur in physical demand with sales down some 20-25% from last year largely due to the already high price for the metal. On the other side of the coin firming crude prices have added some support to the metal as have european debt worries, with Spain, Italy and the Netherlands continuing to attract focus. Today’s support is seen at $1634.15 and Monday’s lows of $1623.35 with resistance up at $1649.40 and $1657.50
EasyForexNews Research Team