Gold is trading above its daily trend line resistance, which is marked today around $1668, with an intra-day high currently posted at $1677.70 with prices continuing to trend higher after the European cash equity opening. Spot gold, once again, has been trading more in tandem with risk assets that have been the subject of some demand this morning, with some of Europe’s banks extending their sharp gains seen during last week’s trading session. The U.S. dollar is mainly softer in FX markets this morning, with the EUR/USD improving to a high of $1.2980, with stops reported triggering above Friday’s NY high of $1.2951, with the upside driver mainly being the comments from a German lawmaker suggesting ESM and EFSF could run in tandem in an emergency. EUR/USD currently trades at $1.2972, with gold prices mainly tracking the FX pair. There are no economic figures due to be published in the U.K. or the U.S. today, so price action is likely to remain subdued for much of the session.
EasyForexNews Research Team