Spot gold prices continue to hover above the $1700 psychological level as traders nervously await the outcome of today’s one day FOMC meeting. Monday saw falls to $1692.60, but the 200 day MA around $1680.70 continues to add support on a closing basis and the metal ended the NY session around $1701 last night. Asia has been relatively subdued this morning with Gold trading a $1698.45-$1705.80 range. ETF holdings continue to build since the hard sell-off of February 29 where the metal shed over $100 on the day, and dips continue to be met by bargain hunters. The long term technical bull picture remains intact despite some short term damage recently, and the rise this year of crude prices is another factor supporting Gold. Whilst China’s weekend trade deficit data showed concerns over its economy, the rise in imports is still seen as heartening and confirms the nations enormous appetite for raw commodities and precious metals. Gold has support at $1692.60 and $1680.70 with resistance at $1717 and $1726.20
EasyForexNews Research Team