Spot gold is heading higher this morning on the back of some improved risk appetite following comments in the Asian session from China’s PBOC’s Zhou. The metal appears to be consolidating support around $1712/13, but remains relatively tightly range bound between there and $1733 which is just above the 14 day MA at $1732.10. Asian markets have seen a pick up from last night’s close of $1720 to $1727.60 this morning with the move underpinned by a rally in oil prices. The overall direction of the metal continues to command debate with Citibank in the Asia Pacific region now recommending clients increase their investment portfolios holdings in the metal by up to 5% and maybe even 10%, on the grounds of a US and Chinese slowdown. This is in sharp contrast to billionaire investors such as Warren Buffet who warns that Gold is an investment bubble just waiting to burst. The metal currently trades around $1727.50 and resistance is seen towards $1733 and $1749/50 with support at the $1712/13, $1700 and $1681.50 which holds the 100 day moving average.
EasyForexNews Research Team