Spot gold prices have edged lower so far Tuesday, currently trading $1637 just above session lows. Prices have been in a narrow range during Asian traded hours, grinding off slowly from $1639 moving in tandem with a weaker euro. Sentiment in gold remains fragile after the changes in European governments again triggered worries about the bloc’s debt crisis, in turn putting pressure on the euro. Prices had picked up from $1632.30 yesterday afternoon and staged a recovery to $1640.90 amid an improving tone in global equity markets after they had endured some heavier losses earlier on in the session. The negative bias in gold remains, although prices are still above support which remains at $1625, with a convincing break of $1625 expected to see prices test the low of $1612 posted on 4th April. $1662 should provide resistance on the upside, with $1680 still regarded as the key level above if prices are to break out of their current range. Physical demand on the downside has been moderate with more buyers expected to emerge should prices decline to around the $1600 level.
EasyForexNews Research Team