Spot gold is trading around $1661 this morning, fractionally above yesterday’s european opening levels of $1658, after a whippy day on Thursday that saw midday highs around $1664 eroded to $1645.25 on risk off sentiment over EU peripheral concerns and falling equities. A late rally in stocks in NY brought the metal back up to close around $1661.60 and trading in Asia has been somewhat subdued this morning in a $1660-1663.70 as we approach the end of Q1. Some concerns are now arising over India which continues to be the top importer of Gold with $58 bln of gold bought in the latest fiscal year, despite an economy showing rapidly slowing growth and lack of policy action from it’s weak government. Recent measures to curb imports with the introduction of import duties on Gold sparked a 3 day strike from India’s gold dealers. Oil and Gold imports together make up some 70% of the nation’s trade deficit and are leaving the country’s economy jeopardy, but the recent imposed duty is seen as a step in the right direction. Support today is at $1645.25 and $1628.20 with resistance at $1684.69 and $1697.25.
EasyForexNews Research Team