Spot gold prices are trading in negative territory Friday, after prices finally gave way to the downside during the previous session. Previous critical support, observed around the $1592 area, gave way ahead of yesterday’s U.S. opening, and sell stops quickly sent gold
prices tumbling to around $1565 a troy ounce. Prices reached a high in Asia of around $1569.20 before meeting some selling pressure, amid a strong showing from the USD across FX markets this morning. The prolonged debt crisis in Europe and the Fed’s decision to hold off on any aggressive stimulus measures has seen gold lose its status as a choice of haven, with investors still clearly expressing a preference for the USD as more financial turmoil lurks within the markets. Spot gold prices have so far held around $1562 to the downside, but look vulnerable should the U.S. dollar extend its gains ahead of the weekend. Some resistance is now building around the $1580 area, whilst the main support is gathered around $1552, just ahead of some moderate options gamma support at $1550. Spot gold last $1563, down $3.27.
EasyForexNews Research Team