Spot gold prices are firmer this morning in Asia having recovered from the lows seen on Wednesday of $1634.60. A recovery in the EUR/USD as US treasuries rallied has also helped lift the metal which posted highs of $1666.70 in NY yesterday, but latest data out of the US continues to point to a more self sustaining recovery and the dollar rally could well continue, with yesterday’s moves largely seen as a bout of profit taking. This morning has seen quiet trade with small gains from the open at $1658 to $1664.10 before settling around $1661. Gains with a close above the 200 day MA at $1682.25 are now required to turn sentiment bullish again, but momentum seems to be lacking for the time being and a break down through $1601 could easily trigger a much deeper retracement towards $1450. Intraday support is seen at $1639.80 and $1534.60 with initial resistance up at $1666.70 and the 200 day MA and Mar 14 highs of $1682.25.
EasyForexNews Research Team