Spot Gold prices are holding steady this morning in Asia, but remain under the 200 day MA at $1677.40 having been as low as $1663.35 in NY last night. The sell-off has been attributed to concerns over the Greek PSI, weaker PMI data and lower crude prices. Europe’s offer to resume talks with Iran over the nuclear power debacle led crude back down through $105.00 and further falls look likely should the EIA confirm yesterday’s enormous build in inventories reported by the API. Gold closed last night just below the 200 DMA at $1674.45 and has attempted a mild rally in Asia this morning to $1678.70 before easing back again to $1672.85. A further close below $1677.40 may well spark another sell-off. Comments from China overnight that it would boost imports of raw materials and energy lifted some commodity currencies and stabilized oil around $105.00 but has had little effect on gold prices. Support is seen towards $1663.35 and $1650 with and resistance up at $1716.90 and $1724.40. Gold currently trades around $1675.50.
EasyForexNews Research Team