Spot gold prices continue to hold firm consolidating last week strong gains, hitting 7week highs yesterday of $1747.70 in NY trade. The metal continues to be driven by high physical demand out of Asia and firmer oil prices, but the move to the highs was quickly reversed later in the session as the EUR/USD fell back on fading risk following weak Chicago PMI data and lack of a resolution to the Greek/PSI deal. Crude oil also fell back sharply after a strong morning rally which added weight to the metal. Gold slipped back to lows around $1726.25 before regrouping and closing the day fractionally higher at $ 1737.70 from opening levels of $1730. In Asia this morning the markets have been relatively quite with the metal trading a $1734.80-$1740.80 range. Today’s support is seen at $1726.25 and $1716.50 with resistance up ahead at $1747.70 and $1756.30.
EasyForexNews Research Team