Spot gold is pushing higher in Asia this morning having eased back on Monday. Crude oil prices and the EUR/USD were pegged back from recent highs following S&P’s downgrade of EFSF’s outlook to negative, and talk that Merkel would have to rely on opposition support to gain Germany’s approval of the bail out. The Bundestag eventually passed the deal, but the metal slipped into the NY close at $1767.60, down from earlier highs of $1779.50. The metal is currently trading around $1773.50 ahead of the European open with sentiment improving on the back of expected ECB cash injections tomorrow. A gentle rise in crude prices this morning is also adding support along with lingering concerns over the Middle East and media focus on any potential strike against Iran from Israel or the US. Gold has initial support at yesterday’s lows of $1761.60 a break there leading down to $1749.35. On the topside offers are seen at $1779.50 ahead of the $1800 level which should offer much sterner resistance.
EasyForexNews Research Team