Spot gold prices are trading marginally higher Tuesday extending their gains from the previous day. Spot gold ended Monday’s session up $17.95 at $1731.70/oz, its largest one-day rise in two weeks, underpinned by rising tensions in the Middle East and hopes of a US solution to its fiscal problems, which has seen financial market sentiment improve over the last couple of sessions after US lawmakers expressed confidence that Congress could reach a deal to avert automatic tax hikes and spending cuts in early 2013. Moody’s downgrade of France by 1 notch to Aaa1 after the NY close had more of an adverse effect on FX pair euro-dollar, with other risk assets such as European stocks and oil prices only called or seen marginally lower this morning. Spot gold prices have been in consolidation mode during Asian traded hours this morning, advancing from an intra-day low of $1729.60/oz to a high of $1734.95/oz, with FX pair euro-dollar now recovering back towards $1.2800 after initially being lower from the French downgrade. Spot gold now trades at $1733.30/oz, up $1.60 on the session.
EasyForexNews Research Team