Spot gold prices are trading lower Wednesday, extending their losses from the previous session. Prices continue to move in tandem with a weaker euro and the precious metal continues to be shunned by investors as a choice of haven, with U.S. Treasuries and German bonds continuing to attract the safe haven cash flows. Continued support for the USD continues to pressure gold prices, with a risk aversion theme once again developing in Asia this morning. Gold prices moved sharply lower yesterday, in tandem with the euro, after Egan-Jones Ratings cut Spain’s credit rating for the third time in less than a month, stoking fears of contagion within the eurozone. Gold prices had just challenged resistance levels of around $1582, but the Spanish downgrade sent the precious metal plunging lower to $1548.50. Prices in Asia this morning have been as low as $1545.60, with spot gold currently trading $1550 a troy ounce, down $5.15 from the NY close.
EasyForexNews Research Team