Spot gold prices are trading around unchanged levels Monday with prices so far confined to a range of $1570/68 in Asian trade. Prices initially slipped to session lows of around $1568 before rallying back, in tandem with an improvement in other risk assets, to trade to session highs of around $1576.40 a troy ounce. Gold prices have so far been in consolidation mode after prices declined by more than 3% last week, pressured by the disappointing outcome of the Federal Reserve’s decision to hold off on any aggressive stimulus measures. Trading in gold is likely to be more range bound ahead of this week’s EU summit where market participants will be watching for price direction for equity markets and gold. A band of resistance for gold is currently observed around the $1586/88 area with larger offers anticipated between $1592/96. Some supporting bids remain around $1556/58 ahead of options gamma support around the $1550 region, with a breach here bringing the previously stubbornly defended $1530/32 area back into focus.
EasyForexNews Research Team