Spot gold prices are opening lower this week with the metal coming under some pressure as risk aversion following China’s cut of growth prospects weighs on general market sentiment. Gold’s recovery has been small since the collapse following Fed Bernanke’s testimony last Wednesday which pointed to little chance of further QE, with resistance now fairly solid in the $1725/27 area capping any bounces. The metal has drifted in Asia this morning in a lacklustre $1709.40-$1716.90 range and currently trades around $1711. Crude oil prices are also weighing despite concerns in the Middle East over Iran’s nuclear capability and intentions, but the metal is seeing some fairly solid support towards $1700 from dip buyers and bargain hunters. Today’s support is seen at $1705 and $1694 (100 day MA) with resistance up at $1724.40 a break there pointing up to $1738.75.
EasyForexNews Research Team