Spot gold prices are trading higher Thursday after trading down to a 4.5 month low on the previous session. Prices have spent the majority of the Asian session edging their way higher, with some mild risk covering seen across Asia. Prices have so far held at $1538.72 with the market currently trading on session highs at $1553.5 up $14 from the NY close. Spot gold has so far been underpinned by some moderate profit taking on the U.S. dollar across FX markets, with some traders taking some profits on the greenback after a flurry of long positions saw the currency advance sharply amid its favoured status as a haven asset. Spot gold resistance is seen around $1556 and then more significantly at $1574 with the market needing to re-establish itself above $1600 to restore confidence to the long side. The $1520/25 support area remains critical on the downside to prevent any additional sharp falls.
EasyForexNews Research Team