Spot Gold moved up sharply yesterday and is holding firm around $1678 in Asia this morning having recovered from lows of $1663.05 yesterday on bargain hunting and short covering, assisted by a sharp rally in crude oil prices and a strong bounce in the S&P 500 as early dollar strength waned. Morning weakness was seen on the back of some weaker PMI data in Europe despite the strong Chinese mfg PMI data over the weekend. Today Asia saw a jump in the non-mfg Chinese PMI which has kept the metal in consolidation mode after the rally yesterday to $1683.55 which eventually faltered just above the 100 dma at $1683.12. Initial resistance is at the 200 dma at $1690.55 ahead of the May 27 highs of $1697.25 and the psychological $1700 level. Support is now seen towards yesterday’s $1663.05 lows and $1659.80.
EasyForexNews Research Team