Gold price hovers around $1,200, muted trade in Asia expected
The gold price continued to fluctuate just above $1,200 on Monday Asian trade, with muted trade expected as the Chinese remains on holiday for the Chinese New Year.
Spot gold was last at $1,203.00 per ounce, up about a dollar from Friday’s close. Silver traded slightly higher at $16.27 as well, three cents more than where it concluded last week.
“Asian trade continues to be muted with China on holidays until Wednesday.
On the top-side $1,215 will be the first level of resistance and from a
support perspective $1,197 is the first line of defence, followed by$1,190,”
In the wider markets, the developments in Greece will continue to be watched. The Greek government is to submit a list of reform measures in return for the continued funding of its bailout program. The extension of the current bailout will however last for four months only, after which a new bailout agreement will have to be negotiated.
“We believe Gold market investors are not so much concerned with the details of the bailout or that some issues have not been entirely resolved, but are more interested in whether a plan has been agreed that saves Greece from exiting the eurozone. As long as this is achieved, sovereign risk is likely to fall and the reasons to buy gold as a perceived ‘safe-haven’ are undercut,. Join Our commodity tips Free trail service today
The gold price continued to fluctuate just above $1,200 on Monday Asian trade, with muted trade expected as the Chinese remains on holiday for the Chinese New Year.Spot gold was last at $1,203.00 per ounce, up about a dollar from Friday’s close. Silver traded slightly higher at $16.27 as well, three cents more than where it concluded last week.
“Asian trade continues to be muted with China on holidays until Wednesday.
On the top-side $1,215 will be the first level of resistance and from a
support perspective $1,197 is the first line of defence, followed by$1,190,”
In the wider markets, the developments in Greece will continue to be watched. The Greek government is to submit a list of reform measures in return for the continued funding of its bailout program. The extension of the current bailout will however last for four months only, after which a new bailout agreement will have to be negotiated.
“We believe Gold market investors are not so much concerned with the details of the bailout or that some issues have not been entirely resolved, but are more interested in whether a plan has been agreed that saves Greece from exiting the eurozone. As long as this is achieved, sovereign risk is likely to fall and the reasons to buy gold as a perceived ‘safe-haven’ are undercut,. Join Our commodity tips Free trail service today
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