Spot gold moved steadily higher on Tuesday as traders covered shorts and crude oil prices rocketed higher on the back of strong equity gains. Bargain hunters were also conspicuous after the heavy falls last week amid talk of increased physical demand for the metal over the Xmas period. Lack of too much negative EU debt crisis talk also helped to keep the Gold price firm and the Dollar Index weaker as the metal continues to gain with risk appetite over recent trading sessions. Gold opened yesterday in Asia at $1594.35 and rose to $1618.65 in NY before settling the day around $1615.50. Asian markets this morning have seen further gains to $1628.10 before balancing around $1626.50 ahead of the European open. Today’s support is at $1592 and $1583.50 with resistance at $1641.80 and $1678.2.
EasyForexNews Research Team