Spot gold prices benefitted from resilient oil prices despite a fall in equities with safe-haven attraction re-emerging into a shaky market as the euro’s brief new year rally ground to a halt. Concerns over Spanish debt and Unicredit shares plummeting around 10% all added to risk aversion despite ECB buying peripheral bonds through the SMP. Gold has also received support from the sabre rattling between Iran and the US over the Straits of Hormuz and a sharp increase in physical demand for the metal out of Asia. The spot opened at $1604 yesterday and after an early slip to $1593.40 headed higher with oil prices, hitting $1618.70 before closing out the day around $1612. Asian markets this morning have taken the metal back up to $1621.70 before settling around $1619 ahead of the London open. Support is now seen at $1593 and $1564 with resistance up at $1642 and $1678.
EasyForexNews Research Team