Spot gold prices are trading marginally higher Wednesday as the market looks to consolidate its gains after clearing a heavy resistance
band during the previous session. Hopes continue to accumulate that the ECB may be mapping out details to cap Spanish and Italian borrowing costs, which have in turn led to another leg higher in risk assets. Gold prices advanced sharply during the US session, fuelled by Spanish, Italian and Portuguese yields all falling back amid speculation regarding the ECB. Spot gold now looks set to challenge its 200-day moving average of around $1642.57 with a convincing break here opening the path to $1664, an objective level set to the upside by many analysts. Spot gold prices have been in consolidation mode for most of the session so far, holding at lows of $1636.30 and edging back higher to an intra-day high of $1640.29 a troy ounce, with the market currently seen trading $1639.80, up $2 on the session.
EasyForexNews Research Team