Spot gold prices remain in negative territory Thursday with the market spending the majority of the morning ranging around and below the $1600 level. Prices opened in Asia around $1607 after the wild swings seen after the FOMC announcement, but soon started to decline from highs of $1607.57 to break below $1600. A moderate recovery saw gold back to just above $1604 before prices extended back to the downside just over an hour into the European cash equity opening, where prices printed session lows of $1594.57 just ahead of medium support seen around the $1592 area. Price action this morning has been fairly muted so far after prices had corrected back quite sharply ahead of yesterday’s FOMC statement. Some longs may have feared a more severe unwind in the precious metal this morning, but so far it has not materialised. Although the Fed’s decision to extend into Operation Twist 2 was not the desired outcome for the longs of gold, prices remain slightly underpinned by anticipation of some potentially weaker U.S. data in the forthcoming sessions. Spot gold currently trades $1599.30.
EasyForexNews Research Team