Spot gold prices are trading marginally higher Wednesday after correcting back sharply lower during the previous session. Better than expected US retail sales data sent gold prices sharply lower from $1614 to lows of around $1591.40 with sentiment in the precious metal crimped after the promising US data dampened hopes for further stimulus measures from the Federal Reserve. The lack of clarity on monetary policy direction is still likely to keep interest in trading gold limited with the majority of market participants remaining on the sidelines until the end of August when the Fed symposium takes place in Jackson Hole, which should add some clarity on the Fed’s current stance on QE3. Gold prices have been in a tight range so far this morning, after yesterday’s fall saw prices settle at $1599.05 a troy ounce. Prices held at lows of $1598.65 in Asia this morning and are currently trading near their highest level at $1602.90, up $3.85 on the session. Some support remains at $1592 a troy ounce, with a break here perceived as quite a large negative for bulls. Minor resistance is anticipated above around $1612.
EasyForexNews Research Team