Spot gold prices remain in negative territory Wednesday extending their losses from the sharp move lower posted in the previous session. Prices have been in a narrow range so far after hovering between $1550/53 early on during Asian traded hours. Prices slipped lower towards the latter part of the Asian session as risk aversion began to establish itself more, with the euro extending its losses against the USD and commodity correlated currency Aussie-Dollar extending its recent declines. Prices held at a session low of $1545.88 just ahead of support camped around the $1542/44 area. Prices have since meandered around the $1550 area which had previously acted as a medium support level amid gamma support from options participants. Gold prices have remained reasonably firm considering the additional weakness seen in the euro this morning. The $1530/35 area should remain intact ahead of Friday’s U.S. jobs data, which will likely be the next catalyst to move gold prices away from their current range. A breach of this level before then will paint a very negative picture for the precious metal.
EasyForexNews Research Team