Spot gold prices are trading in positive territory Thursday after taking a deeper correction lower during the previous session. Spot gold ended Wednesday’s session $7.90 lower at $1752.75 after prices slumped at one stage to a two week low of $1737.50 as strength in the US dollar gathered some more momentum, in turn putting some increasing pressure on the precious metal. Spot gold has also corrected lower on fears that some of the previous QE3 euphoria may not be the big bullish event that some market participants may have originally perceived it to be, not helped by comments made Tuesday by Philadelphia Fed Bank President Charles Plosser. Plosser said the Fed’s recent actions boost economic and employment growth carry “significant risks.” Spot gold prices recovered after breaking support at $1745/oz as the US dollar continued to attract have flows. Gold prices have edged their way back higher in tandem with some risk short covering this morning, picking up from session lows of $1751.20 to session highs of around $1760/oz, with the market currently trading $1758 a troy ounce, up $5.25 on the session.
EasyForexNews Research Team