Spot Gold prices received a boost yesterday joining in a risk rally on the back of firmer Chinese, Indian and Australian PMI data and later compounded by a global PMI returning above 50.0. Stronger equity markets, and Crude Oil rising on the back of increased US/Iran tensions in the Gulf also added to the more positive tone. The Gold opened the first real day of trading this year at $1565 and heading higher in Asia to $1590. Europe then took the baton with a further rise to $1597.70. NY then continued the move up through $1600 to highs of $1607.40, before easing back to close at $1604. Asia this morning posted an early high of $1608.65, before easing off to $1593 and balancing around $1600 ahead of the European open. Today’s support lies towards $1586 and $1565 with resistance at $1614 and $1642. Spot Silver tracked the Gold move yesterday with a rise to $29.75 from $27.77, but has since eased back in Asia this morning to $29.14.
EasyForexNews Research Team