Spot gold prices remain in modest negative territory Monday, with limited price action seen in the precious metal so far. Gold prices did initially have a glitch lower in early Asian trade, after some early flows saw haven buyers from last week exit their longs in anticipation of a more aggressive risk-on theme developing in Asia. Spot gold prices initially dipped sharply to around $1607, but quickly recovered to trade back to the large resistance band camped around the $1629/32 area. Prices then pared back to around $1617 in tandem with a decline in risk assets and some weakness expressed by the euro across FX markets. Gold prices did, however, remain reasonably firm during the risk correction, with prices finding some hourly support from the 100-day simple moving average (SMA) which has contained price on the downside so far during today’s session. Spot gold prices have now stabilised to trade $1621.80 down $5.30 from Friday’s NY close. Medium support remains around $1606/09 with current price levels slightly underpinned by hopes of monetary stimulus at this week’s FOMC meeting.
EasyForexNews Research Team