Spot gold prices are trading modestly higher Thursday amid a slightly weaker showing from the US dollar observed during Asian traded hours. Gold ended Wednesday’s session almost $10 lower at $1573.52, pressured by flows exiting the precious metal after any new imminent flavour of QE from the Federal Reserve failed to materialise over Federal Reserve Chairman Ben Bernanke’s 2-day testimony in front of Congress. Gold prices remain pinned within the $1550/$1600 an ounce range as market participants wait for the next Federal Reserve meeting for cues on QE3. Prices continue to find support from hawks trying to defend the $1550 area, which has also been subject to some options gamma support on the approach. Some bids are currently camped around the $1564 area with traders telling MNI this morning that a breach here could lead prices back to challenge the $1550 support band. Some stops are currently working around $1542 should support give way at $1550. On the upside, offers continue to roll in around $1592, with some lighter sellers seen around $1587/88. Spot gold currently trades $1578.80.
EasyForexNews Research Team