Spot gold prices are trading in positive territory Wednesday recovering some of the losses posted during the previous day. Spot gold ended Tuesday’s session $18.45 lower at $1697.55/oz with prices moving sharply lower after triggering stop loss orders after breaching $1710 and $1705 on the downside. Prices did, however, hold just below key support at $1692. Spot gold made a low of $1690.64 Tuesday, the lowest level seen since November 6, amid some fund liquidation, whilst options related selling and stop loss orders also contributed to the precious metal’s decline. This morning, gold prices have pared some of yesterday’s sharp losses although volumes remain thinner than average so far. Many market participants have moved to the sidelines until further clarity is established on US fiscal cliff negotiations. Spot gold prices have advanced back higher this morning, having initially printed a low of $1697.15/oz, and now trade at $1705/oz, up $7.45, after making a session high of around $1706.50/oz a few moments ago.
EasyForexNews Research Team