Spot gold prices are trading in positive territory Friday after initially consolidating just above the lows posted during yesterday’s session. Spot gold has advanced in tandem with a move higher in the euro, after European leaders agreed early this morning to ease repayment rules for emergency loans to Spanish banks and relax conditions on potential help for Italy, helping to ease concerns over the region’s debt crisis. The announcement initiated a move higher in the euro and equity markets and saw the USD wilt against other currencies, which in turn provided a boost to gold prices. Despite the moderate rise, gold prices remain on course to post their worst quarter since 2004 as global economic slowdown from Europe to China has pointed investors to safer havens such as the U.S. dollar. Gold prices traded an intra-day low of $1551.27 in Asia this morning and have since advanced strongly to highs of around $1572. Some resistance is seen above around $1582, with some buy stops present around $1593/96. Some medium bids remain around $1556/58, with prices now trading $1571.6, up $19.
EasyForexNews Research Team