Spot gold prices remain around unchanged levels Friday with investors cautious of taking on any additional exposure ahead of
large event risk this weekend. Spot gold prices held at session lows of $1621.18 going into Asian trading hours and gradually edged their way higher as the risk theme in Asia began to modestly improve. Gold prices then once again stalled around the $1628 area, encountering some medium resistance camped between $1628/31 which also put a cap on prices during yesterday’s session, where a sharp retreat from that level was observed thought to be a large liquidation order coming from SPDR Gold Trust which had a sharp negative impact on August futures. Gold prices have since recovered on persistent dip buying from various hedge funds amid speculation that some QE3 may be coming from the Federal Reserve after some surprising weak U.S. jobless claims data, published yesterday, stirred hopes of some additional monetary easing. Gold prices have also benefitted this week from some moderate haven flows as investors await the outcome of this Sunday’s Greek elections. Spot gold last $1624.20.
EasyForexNews Research Team