Spot gold prices are trading moderately lower Friday, with prices so far moving in tandem with the euro. Prices has staged a modest recovery yesterday, mainly driven by a pause in U.S. dollar buying. Gold prices did not establish themselves above significant resistance at around $1574, with the market briefly reaching a level of $1578 before falling back down to around $1552. Prices in Asia reached $1559.70 before falling back to lows of around $1551.40 as Asian markets entered risk aversion mode. $1530 remains the closely watched level on the downside, with bids seen just ahead of that area in anticipation that prices will hold again if the level gets re-tested. Resistance is seen around $1585 on the upside, with medium offers also present around the $1578 area. CME group announced yesterday that they were to cut margins for trading gold, crude oil, RBOB gasoline and lean hog contracts, with effect from the close of business on May 29. Margins for trading gold have now been lowered by around 21% so far this year. Spot gold is currently trading $1554.20, down $5 from the NY close.
EasyForexNews Research Team