Spot gold is consolidating around $1720 in Asia this morning but still reeling from Wednesday’s massive 5% drop and receiving no help from recent comments from Fed Bernanke’s dampening hopes of further QE. The metal had a relatively tame session yesterday in a $1702-1726 NY range, but appears to be trying to recoup with physical buying and bargain hunting now emerging following the plunge to $1688. Asian markets this morning have seen the metal trade a subdued $1717.00-1724.40 range, but the overall trend remains firm despite Wednesday’s setback. Fund managers continue to absorb outflows in the metals with the UK’s leading gold fund manager Blackrock seeing inflows of almost 1.5bln stg over the last 2 years as the fund sees the Gold rally continuing in the face of almost zero returns on cash in alternative investments. Support today is at $1702.30 and $1693.85 (100 day MA) with resistance up at $1743.80 (14 day MA) ahead of $1750. Gold currently trades around $1719.25
EasyForexNews Research Team