Spot gold prices closed virtually unchanged yesterday with an early spike up to $1641.90 in the european session gradually unwound in NY as early euphoria over the ECB’s LTRO tender was followed by some pessimism. Italy and Spanish yields rose and some hefty macro EUR/USD sellers led to a return of risk aversion which in turn pulled spot gold off the highs. Fears of an imminent France sovereign downgrade also led the EURUSD lower. The metal has been tracking risk appetite or lack of it over recent sessions, and fell back to $1606.10 before a recovery into the close at $1615.15, down some 40c from Asian opening levels. A sharp rise in Nymex crude prices following EIA data failed to add any buoyancy to the metal. Asian markets this morning have seen a steady slip again from early highs of $1616.10 to $1602.90 in recent trade, before balancing around $1607.50 as Europe opens. Today’s support is at $1592.15 and $1583.50 with resistance at $1642 and $1678.25.
EasyForexNews Research Team