Spot gold prices are trading modestly higher Wednesday after posting some slim losses the previous day. Spot gold ended Tuesday’s session $3.20 lower at $1725/oz after prices remained pinned in to trade on a range bound basis as markets await a sense of how the US will proceed in terms of tackling their fiscal cliff, which continues to weigh on risk sentiment. Gold prices have been tied to a narrow trading range during Asian traded hours this morning, with markets generally buying time ahead of this afternoon’s US session. Some moderate improvement has been observed in FX pair euro-dollar which has steadied this morning, but appears to still be lacking impetus for a decisive rebound. Spot gold has edged its way higher, in thin trade, from an intra-day low of $1724.70/oz to a high of $1729.65/oz and currently trades at $1728.20/oz, up $3.20 on the session.
EasyForexNews Research Team