Spot gold prices took a sharp dive lower yesterday following broad based risk aversion led by weak PMI data from China and Europe. The commodity sector and equities were all hit hard as fears of weaker growth across Asia and Europe ended the recent rallys. The metal has also suffered from a drought in physical demand from India over the last week as India’s bullion markets remain closed in protest against the government’s decision to hike gold import taxes. Gold fell back sharply from highs in Asia of $1656.50 to $1628.20 in NY but did manage a late rally to close at $1645.50. Asia markets saw an early blip up to $1649 this morning before easing back again to $1642.25. Support today is at yesterday’s lows and $1614.30, with resistance at $1652.60 and $1662. Gold currently trades around $1642.50 ahead of the European open.
EasyForexNews Research Team