Spot gold prices are trading in negative territory Tuesday, moderately extending their declines from the previous day. Spot gold ended Monday’s session $2.98 lower at $1728.20/oz after printing an intra-day high of $1738.10/oz after lingering concerns surrounding the U.S. fiscal cliff initially attracted some near-term haven demand. Bullion prices have since slipped back a little, hampered by some gains displayed by the US dollar which has firmed up against a basket of currencies across FX markets. Some uncertainty surrounding another tranche of financial aid for Greece has seen the euro drop to a two-month low against the US dollar this morning, with FX pair euro-dollar extending lower to around $1.2673 after stops were seen triggering beneath $1.2685 amid a risk-off theme observed during Asian traded hours this morning. Spot gold prices faded back from highs of $1729.25/oz to hold at an intra-day low of $1721.55/oz, with the precious metal now currently trading at $1726/oz, down $2.20 on the session.
EasyForexNews Research Team