Spot gold prices are trading in modest negative territory Wednesday in what has been a lacklustre session for the precious metal so far. Tuesday afternoon saw gold print session lows of around $1567 a troy ounce as prices slipped amid concerns that this week’s EU summit would fail to produce any concrete measures to aiding Europe’s ongoing debt crisis, prompting a possible fresh flight to the safety of the USD which in turn will dent the prospects for gold prices. Gold has now given back the moderate spike that was observed during Monday’s session, when prices broke to the upside amid some more weak U.S. data which spurred some buying in gold amid hopes that the Fed would eventually have to embark on some more aggressive stimulus measures. Sentiment in gold remains on the fragile side, as market participants continue to see investors express a preference towards the USD as their choice of safe haven. In Asia this morning, prices held at lows of $1570.35 after posting highs of $1574.95 with some mild speculation that Turks, Chinese and the Kazakhs have been showing some buying interest.
EasyForexNews Research Team