Spot gold prices are trading around unchanged levels Friday with the market in consolidation mode after yesterday’s move higher. Gold prices advanced to a 3-week high as market participants began to clearly position themselves for another wave of quantitative easing (QE) from the US Federal Reserve in the wake of a string of negative US economic data. Spot gold reached an intra-day high of $1621.41 during Thursday’s session, the highest level seen since early July, before closing at $1616.10 a troy ounce. In addition to the increased probability of more QE, gold prices were also underpinned by a rise observed in the euro, with the single currency posting gains of over 1% against some of its peers after the comments from ECB president Mario Draghi, who stated that the ECB would do “whatever it takes” to save the euro. Some modest gold market participants have told MNI this morning that they would be surprised if the precious metal breaks above $1630 today and that gold buyers should exercise a degree of caution until further data and commentary comes out of markets next week. Spot gold last $1616.60.
EasyForexNews Research Team