Spot gold is attempting to stabilize this morning after another sharp drop yesterday as hopes of further QE from the Fed become distant. Long liquidation has been widespread in recent sessions as investors turn out of the metal into equities. Gold has traded up from early Asian lows of $1636.25 to $1648.85 this morning, but remains on a soft footing until a move and close above $1681.60 (200 day MA). Trendline support is seen at $1601 which if broken would heighten chances of a further fall to around $1445/1450. As for today nearby support is seen at yesterday’s low in NY of $1634.60 and $1625.50 (Jan 13 low). Resistance is initially seen towards $1650.50 and $1675.50 ahead of the 200 day MA at $1681.60.
EasyForexNews Research Team