Gold’s London AM fix this morning was USD 1,685.60, EUR 1,282.24 and GBP 1,068.26 per ounce.
Gold fell $6.30 in New York yesterday and closed above the $1,700/oz level at $1,705.30/oz. Gold fell in Asia prior to further modest price falls in Europe which saw it fall below yesterday's inter day low of $1,694/oz. Gold is now trading at $1,686.40/oz.
Gold’s short term technicals are poor and a further correction to or below the 200-day moving average at $1,670/oz is possible (see Barcap view below). However, it is worth noting that gold’s weakness has coincided with recent dollar strength and gold has not fallen as much in euro, pound or other fiat currency terms.
The fundamentals of significant macroeconomic, systemic and monetary risk will support the precious metals. As will the increasingly risky geopolitical situation – the risk of which is not priced into markets just yet.