Spot gold prices are holding just above the psychological $1700 level in Asia this morning with the rally from Tuesday’s lows extended to $1706.90 this morning from early lows of $1698.10. Crude prices have added underlying support to the metal a head of the Greek PSI bond swap result. The metal has recently slipped back to $1701.50 on the back of the announcement that 85.8% of bondholders had accepted the swap, which was slightly below expectations, but does mean that the 2nd tranche of Greek bailout will be paid. EUR/USD has slipped back and dragged the metal lower, but Gold is now appearing to find support just above $1700. Comments from the Fed that they might consider buying bonds has sparked further thoughts of QE in the US and this is also adding some support to the precious metal markets. Today’s support is seen at $1698 and the 100 day MA at $1695.60 with stronger support below at $1679.10 (200 day MA). Resistance remains up towards Monday’s highs of $1716.85 and $1726.15.
EasyForexNews Research Team