Spot Gold prices eased back yesterday in relatively calm trading conditions on the back of softer crude oil prices despite a weaker USD Index. Lack of fresh developments following yet another inconclusive Merkel/Sarkozy meeting led to a rather indifferent bullion market with the metal trading a $1605.20-1623.75 range after opening in Asia at $1617.50. Gold closed out the day at $1611.35, but has since picked up in Asia this morning with oil and the general commodity market to highs of $1623.00 in recent trade. Resistance ahead if seen at $1631.30 (Friday’s highs) with a break there pointing up to the Dec 21 highs of $1641.90. Support now lifts to $1606.50 and $1597. Investors appear to be waiting for some further signals/developments from the eurozone before committing to further positions, and remain wary ahead of the Italian and Spanish bond auctions later this week.
EasyForexNews Research Team