Spot gold prices are trading around unchanged levels Thursday after posting some slim gains during the previous day. Spot gold ended Wednesday’s session little changed at $1717.75/oz, up $1.75 from the previous close. Prices did, however, pare back sharply from a high of $1731.40/oz to lows of just above $1703, after risk assets came under pressure when US markets opened, with many market participants initially anticipating more of a risk-on session during the European hours. Flows into the USD continue to hamper gold prices, although $1700 still remains intact after Obama’s re-election. The greenback continues to draw strength amid concerns about the so called fiscal cliff in the US. Spot gold prices have settled into a narrow trading range since yesterday’s correction back from above $1730, with a high in Asia this morning of $1720.50/oz to hold at a low of $1715.70, with the market currently trading just above last night’s close at $1718.50, up $0.75 on the session.
EasyForexNews Research Team