Spot gold prices are trading in positive territory Wednesday after posting their biggest one day decline seen since late June during the previous session. Gold prices ended Tuesday’s session $20.40 lower at $1567.28 after prices had briefly challenged large resistance around $1601/02 driven by a wire service report that the BOJ’s Masaaki Shirakawa had said the Japanese central bank would increase asset purchases. Prices then slumped after a meeting of some eurozone finance ministers disappointed some investors that were seeking some more progress on patching up the region’s debt crisis. Prices in gold continue to drift around without any clear direction, with some analysts now seeing the precious metal in a new range of around $1550 to $1600 for the forthcoming sessions. The slide in prices overnight prompted some buying interest from China, but traders report no signs of any major activity in the physical market, with prices needing to breach $1565 on the downside to generate any interest. Gold prices have edged their way back higher this morning to highs of $1577.80, now $1576.90.
EasyForexNews Research Team