Spot gold prices are now trading in marginal negative territory Monday in what has been an uneventful session so far. Gold prices pared back from intra-day highs of $1620.05 before the opening of the European cash equity markets and have spent most of the morning grinding their way back to unchanged levels. A move lower from FX pair euro-dollar did not have too adverse an impact on the precious metal, after the euro slid across the board amid comments from German FinMin spokesman Kotthaus that suggested that he was not aware of any ECB plans to target bond spreads. The German FinMin headline eventually sent spot gold to session lows of $1613.80, just ahead of support working around $1611/12, but price action remained muted at the time as was the case in the December contract on Comex. Spot gold prices are likely to remain range bound for the remainder of the session amid a quiet day on the economic calendar. Sellers remain lurking above around $1628/30 with some light bids working around $1611, with more significant support observed around the $1601 area. Spot gold now trades $1616, down $0.40.
EasyForexNews Research Team