FXS: Gold higher on New York session, high at 1775
FXstreet.com (Barcelona) - Gold spent Tuesday in a $8 range, at 1762/70, but flows ahead of the New York session triggered a rise to 1775 high as risk aversion persists this week with the ECB and Bundesbank lawyering up to discuss the legality of the OMT program and disappoint market expectations of a solid project on its way. Also, the market prices in the announced central bank action, especially the announced Fed's QE3, strengthening Gold against the buck.
The July Redbook index was released today, pointing to a +1.7% rise on the month (from +1.8% in June) and an annualized softening from +2.4% to +2.0%. The XAU/USD eased to 1772.
“Still, given the "shooting star" on 21 September and the strong resistance area between 1791 (29/02/2012) and 1803, the short-term upside potential seems limited”, wrote MIG Bank analyst Bijoy Kar, expecting a short-term bounce after having successfully tested its support at 1752 (28/09/2012).
