Spot gold prices are trading around unchanged levels on Thursday ahead of the EU summit. Prices initially edged their way higher during Asian traded hours to highs of $1579.15, in tandem with a modest move higher in the euro, which was showing some resilience ahead of today’s summit. Since then, spot gold prices have drifted back lower despite the euro holding on to some of its gains seen earlier. Prices managed to hold around $1563 yesterday, just ahead of some sell stops that were working around the $1560/62 area, and remain prone to volatile spikes over U.S. data as market participants continue to speculate over more eventual aggressive stimulus measures from the Federal Reserve. Market sentiment in gold remains fragile ahead of the EU summit, with many investors wary of an additional flock to the U.S. dollar should nothing concrete emerge from the summit. Some resistance in spot gold is now building around the $1588/92 area, whilst some modest support is camped around $1566/68. A convincing break of $1562 will more than likely see prices test options gamma support around $1550. Gold last $1576.10.
EasyForexNews Research Team