Some profit taking yesterday led a small downturn in spot Gold prices with the metal also weighed down by reduced physical demand due to the Asian lunar new year holidays and easing crude oil prices. Lack of a result in the Greek debt swap debate weighed on the EUR/USD in the afternoon which in turn added downward pressure to the metal. Gold opened yesterday at $1676.80 in Asia and after a brief high of $1679.85, fell back in Europe and NY to lows of $1661.60 before closing at $1665.50. Asian markets have seen a small recovery this morning with prices back up to $1668.90 as crude prices picked up again and the EUR/USD recovered back through $1.3000. Today’s support is seen towards $1661.50 and $1645 with resistance up at $1682 and the psychological $1700 level.
EasyForexNews Research Team