Spot gold prices are trading moderately higher Wednesday taking their cue from some additional weakness observed in the US dollar. Spot gold ended Tuesday’s session $5.95 higher at $1732.20 a troy ounce, with prices given a boost by some continued weakness in the US dollar after Moody’s warned about a possible credit rating downgrade for the US. This morning has seen the US dollar weaken against Asian currencies, with momentum funds and macro accounts reported as the main sellers. Spot gold prices remain tied to a narrow trading range ahead of this morning’s German Constitutional Court ruling on ESM and the start of a 2-day FOMC meeting, where market participants in the precious metal have already priced in some sort of stimulus measures from the Federal Reserve. Spot gold prices held at session lows of $1731.25/oz and have since edged their way higher to print an intra-day high of $1737.23, with the market currently trading $1736.50 a troy ounce, up $4.30 on the session.
EasyForexNews Research Team