Spot gold prices are trading moderately higher Wednesday after posting some sharp losses during the previous session. Spot gold ended Tuesday’s session $27.38 lower at $1670.77/oz after US fiscal discussions dented the bullion’s safe haven appeal with some market participants shifting flows into equities as hopes increase that US lawmakers may edge towards a pre-Christmas deal on the US deficit. Spot gold prices have regained some ground so far this morning, drawing some moderate strength from a slightly weaker US dollar, but bullion prices remain near their lowest level seen in more than three months. There was also some market chatter about a large options player returning to the market who had previously been a big buyer of the Jan 1675 puts. This time the market participant is rolling the strikes back to the Feb 1675 puts, paying a premium of $15 with 9k lots noted thus far as of yesterday. Spot gold prices have tentatively edged their way back higher in Asian hours this morning, advancing from lows of $1669.96/oz to an intra-day high of $1676.87 and now trade at $1675.50, up $4.73.
EasyForexNews Research Team