Gold at $1,730, appetite is lacklustre

The market is reluctant to sell gold aggressively ahead of the European Summit on Friday. Gold briefly looked to break below $1,700 but US trading pushed gold higher, as support at this level remains very strong. We expect physical demand to return in some strength on approach of $1,650. However, with gold at $1,730, appetite is lacklustre. Gold support is at $1,709 and $1,690. Resistance is $1,740 and $1,752.