Spot gold prices have gained 0.25% Tuesday, as the metal looks to break two consecutive down sessions. Prices extended down to a low of $1712.13 during Monday’s session, with hopes evaporating for any imminent quantitative easing from the U.S. Federal Reserve after better than expected U.S. jobs data surprised markets on Friday. Gold has been subject of a technical correction lower, after a solid run higher saw the precious metal sit in overbought territory for a couple of trading sessions last week. The U.S. jobs data has been the main catalyst for the move lower, with investors switching funds out of metals into global stocks. Analysts still expect gold prices to benefit in the long run from the ultra-loose monetary policy of the U.S. Federal Reserve, but many speculators have jumped on the “sell gold, buy equities” bandwagon after Friday’s surprising U.S. jobs data. A stronger USD has also eroded investor demand, with traders remaining in a risk-off mode today as investors struggle to stomach the ongoing roller coaster ride in Greece. Spot gold is currently trading $1722.6, up $2.25 on the day.
EasyForexNews Research Team