Spot gold prices are trading in negative territory Friday, moving in tandem with lower equity prices across Asia. Prices have once again been in decline after briefly getting back above $1600 during yesterday’s U.S. session. Buyers were seen entering the market yesterday afternoon after the precious metal had posted three consecutive down sessions, but prices faded once they reached $1602. The majority of the support came from the physical market, but the negative tone in gold remains as it continues to trade more like a risk asset as opposed to a haven. Prices have retreated to $1584, down $10, near session lows posted earlier around $1583.5. Sentiment remains fragile amid political issues surrounding the eurozone, whilst the news that JP Morgan has taken a $2bln loss on a synthetic derivatives position is likely to keep risk assets on edge for much of the session Friday.
EasyForexNews Research Team