Spot gold prices are trading marginally higher Thursday, with prices in consolidation mode after managing to break above $1600 during the previous session. Spot gold posted a close of $1603.85 a troy ounce after prices advanced in wake of a weaker than expected US home sales reading. The weak data re-ignited the speculation that the Federal Reserve will have to embark on another round of quantitative easing (QE) to provide a boost to the stumbling US economy, despite sending out earlier signals that the door may remain closed for the near term. Gold prices may also have been influenced by a shift in positions ahead of today’s expiry of August options contracts, with the $1600 level maybe now providing a line of defence for outstanding options contracts. Gold prices held at session lows of $1601.40 this morning and are now currently printing session highs of around $1607 ahead of the European cash equity opening at 0700GMT.
EasyForexNews Research Team