Spot gold prices are trading modestly lower Thursday with prices consolidating a little after the wild swings observed after yesterday’s FOMC announcement. Spot gold initially reacted negatively to the news that the Fed had decided to extend its operation twist program, which fell short of some gold speculator’s expectation levels. Prices initially declined to around $1590 before reversing back sharply higher to $1621, before falling back again as the market digested various comments from Fed Chairman Ben Bernanke. Spot gold prices opened the Asian session around $1607 and initially came under additional pressure to trade to session lows of around $1597.70 before edging their way back higher to currently trade $1602.40, down $5 from the NY close. Sentiment remains a little on the fragile side with market participants on the long side not getting their desires met by the Fed after they stopped short of unleashing another round of QE to stimulate the economy, a motion that would of probably sent spot gold prices towards the $1650/60 area and a possible path back to the $1700 area.
EasyForexNews Research Team