Spot gold continues to consolidate the gains seen on Tuesday with a somewhat subdued session yesterday and in asia this morning where prices have been tied into a $1653-1663 range. Rekindled talk of possible further QE from the US has led to further safe-haven demand this week for the metal along with concerns in the EU over Spanish and Italian debt. The approaching Indian wedding season has also sparked some fresh physical demand for Gold. Yesterday’s sharp bounce in Crude oil has also helped to underpin the metal. The Chairman of the GFMS stated that 2013 could see a record high price of over $2000, but feels the year will see a peak with prices falling back as monetary policy in key economies start to normalize and investment appetite in bullion markets slacken. Gold is currently trading around $1658.30 with nearby support at $1553 and $1532 and resistance initially at $1663 ahead of $1681.
EasyForexNews Research Team