Spot Gold prices slipped off again yesterday and again this morning in Asia. The dip yesterday from highs of $1654.50 to $1638 seen on the back of Spanish debt concerns and a fall in the price of crude oil, where a larger than expected build in crude inventories weighed on prices and dragged the metal lower. BOE Minutes hinting at less chances of further QE also added to the negative tone as well as some noticeable lack of demand in the physical market despite the approaching Indian Akshaya Tritiya festival which normally boosts demand. The metal is currently trading around $1638.50 in Asia having touched lows earlier of $1636.95 after opening at $1642.15. Support today is seen nearby at last week’s low of $1632.00 with a break there opening a deeper move down towards $1620. On the topside resistance comes in at $1648.90 and yesterday’s highs of $1654.50.
EasyForexNews Research Team