Spot gold prices are trading around unchanged levels Thursday, with the market consolidating a little after three consecutive down sessions. Prices held around $1580 yesterday. Spot gold has been range bound for much of the Asian session, edging its way back higher in tandem with a slightly improved showing from the euro and a moderate bounce in AUD/USD prices across FX markets. $1588.80 has so far held on the downside, with prices currently trading near their best levels at $1594.80 a fraction above yesterday’s close of $1594.60. Despite the small bounce sentiment remains fragile with investors still concerned about the political deadlock in Greece and the problems that exist within Spain’s banking sector. Gold prices may still struggle to make any headway with prices needing to get back above $1625 for some confidence to return to the long side. $1580 remains the level to watch on the downside. Bulls are relying on some physical demand emerging should prices turn lower, with $1565 needing to hold to avoid stops.
EasyForexNews Research Team