Spot gold prices are trading lower Wednesday, extending their losses to the downside pressured by risk aversion. Prices kicked off the Asian session around $1545 and attempted to hold above the $1540 level, before a sharp decline in Asian stocks saw gold move in tandem as Asian markets got to grips with the uncertainty surrounding Greece. Spot gold plummeted to a low of $1533 as haven funds poured into the USD, putting additional pressure on the precious metal. Physical support for gold has been absent from the market with many retailers sidelined spooked by the volatile price action seen over the last few trading sessions. The euro also remains under pressure, posting a four-month low Wednesday, as issues surrounding Greece intensify. Some support for gold is anticipated around $1520, the lower levels seen at the end of 2011, with the precious metal now in negative territory for 2012. Spot gold is currently trading $1536.20 down $8 on the session so far.
EasyForexNews Research Team