Spot gold prices have built steadily higher in Asia this morning having been as low as $1705.40 in NY yesterday. The metal has pulled away from the “drop zone” at $1700 when solid support arrived towards last Friday’s lows of $1704.70. The metal appears to be tracking risk appetite and has also received some support from buoyant crude prices in recent sessions . Central bank demand for the metal is at its highest level since 1971, and global demand is at 14 year highs according to reports from the World Gold council. Physical demand out of Asia remains relentless, with China buying almost 191 tonnes in 2011, a rise of around 20% on the year and eclipsing India’s 173 tonnes. With demand so high dips are continuing to attract buyers and analyst forecasts still point to gains through $2000 before the end of the year. The metal has traded up to $1734.15 this morning in Asia on the back of hopes that the long awaited Greek bailout will be signed off on Monday by the EU. Gold currently trades around $1733. Today’s support is seen at $1712.25 and yesterday’s lows of$1705.40. Resistance is up at $1752.60 and $1763.25.
EasyForexNews Research Team