Spot gold prices have slipped into negative territory Thursday, pressured by an uncertain outlook on future stimulus measures by the Federal Reserve. Prices have edged their way lower in Asia this morning, dropping for a fourth session out of six, and a few moments ago printed session lows of $1568.32 a troy ounce, down $8.08 from the NY close. Prices continue to drift around aimlessly amid lowering expectation levels that any near term stimulus measures from the US Federal Reserve are about to be unleashed on the market. Last night’s FOMC minutes clearly illustrated that a sizeable body of support for further immediate stimulus action from the Fed is currently absent and this, in turn, has weighed on gold prices overnight. Prices look likely to continue to trade within the range of $1550/$1600 in the short-term, with many funds remaining on the sidelines as volatility in the precious metal continues to decline. A band of resistance is now present in the market around $1588/92 with bids now seen on the approach to options gamma support around the $1550 area. Gold is currently trading $1569.60
EasyForexNews Research Team