Commodity Daily News

Spot Gold Prices Ease

The price of spot gold continues to struggle in this risk-off environment as the commodity has been unable to break its recent trading range. One reason for the consolidation may be lower inflation in China and reduced growth forecasts from India. The two Asian nations make up a healthy portion of global demand. Also contributing to the lower gold price is a strengthening USD. The USD index (DXY) is just off of its November high as the USD has once again shown to be the safe haven currency of choice.

Technicals show spot gold prices have failed to make a move above the falling trend line from the September high which comes in today at $1,749. The commodity has support at the rising support line from the September 29th low which is found at $1,668. The next support is October 20th low of $1,607.