Spot gold prices are trading marginally lower Tuesday extending their declines from the previous day. Spot gold ended Monday’s session $8.65 lower at $1764.45/oz as prices entered correction mode after an improved showing from the US dollar. Weaker than expected German business sentiment added some weakness to the euro which had already been subject to some selling pressure prior to the release of the German IFO data. A sharp fall in oil prices also weighed on the precious metal as the US dollar picked up across FX markets after some recent declines. Spot gold prices appear to be a little fatigued after some solid gains stemming from the latest wave of QE from the US Federal reserve, with price action possibly winding down ahead of next week’s extended Chinese holiday. Spot gold prices initially edged their way higher to an intra-day high of $1767.90 during Asian traded hours, but prices have since slipped back a few moments ago in tandem with a fall back in FX pair euro-dollar, trading a session low of $1762.20, currently seen at $1763.20 a troy ounce, down $1.25 on the session.
EasyForexNews Research Team