Spot gold prices remain in mild positive territory Friday, with markets so far today in consolidation mode ahead of the weekend. Gold initially extended yesterday’s sharp losses, on the European cash equity opening, to session lows of $1559.80 before prices edged their way back tentatively to trade to $1572.50, ahead of minor resistance gathering around the $1574/76 area. Some support for the precious metal is observed around $1552/55 ahead of options gamma support at $1550/52. A convincing break to the downside of $1550 will leave prices looking increasingly vulnerable, bringing the previously stubbornly defended $1530/32 area back into focus. The U.S. dollar continues to be the safe haven of choice to investors which in turn is putting increased pressure on gold prices, with some speculative longs, that was expecting a green light from the Federal Reserve on QE3, being forced out of the market after prices surprisingly held up reasonably well yesterday morning. Medium offers remain camped around $1584/86, with prices needing to get back above $1592 to restore some confidence amongst the longs.
EasyForexNews Research Team