Spot gold prices are trading around unchanged levels Tuesday with prices so far confined to a tight trading range during Asian traded hours. Prices in the precious metal continue to drift around, with no fresh catalyst seen to spur prices convincingly in either direction.
Gold continues to remain absent from its haven status, with the USD, US Treasuries and German Bunds continuing to remain the top destinations of choice for haven flows. Volatility in the precious metal continues to decline, which in turn is keeping funds at arm’s length from the market. Spot gold prices continue to give the feel that they may eventually break to the upside, but a number of external factors are absent such as a clearer signal on more quantitative easing (QE) from the Federal Reserve. Support for gold remains at around $1555 on the approach to options gamma support at $1550. A breach here opens up the path to the previously stubbornly defended $1530 area, a level also likely to attract support from the dwindling physical market. Resistance remains above around $1592. Spot gold is currently trading $1577.40.
EasyForexNews Research Team