Spot gold prices are trading marginally higher Tuesday as ongoing expectations for further monetary easing from the US Federal Reserve and other central banks continue to underpin prices. Spot gold ended Monday’s session $4.70 higher to post a close of $1621.10 a troy ounce, a fourth consecutive session of gains. The positive underlying bias remains in tact as market participants await additional US economic data ahead of Federal Reserve Chairman Ben Bernanke’s speech scheduled to take place in Jackson Hole at the end of August. Spot gold prices initially faded early on during this morning’s Asian session to hold at session lows of $1618.70 before edging their way back higher to an intra-day high of $1623.15 a troy ounce. Brokers report limited flows in the December future this morning, with offers still observed in the cash price around $1628/30. Some medium bids are present below around $1611/12, with $1592 still the critical long term support level. Spot gold is currently seen trading narrowly higher on the day at $1622.50 a troy ounce, up $1 on the session.
EasyForexNews Research Team