Liquidity in the Gold space remains light

Liquidity in the Gold space remains light. A much better-than-expected government bond auction in Spain this morning provided strength to the Euro, aiding precious metals marginally higher.

As pointed out yesterday, physical demand remains healthy especially from Thailand and India with the gold price below $1,600. This should support gold on approach $1,560. We maintain that gold below its 200day MA at $1,621, should continue to struggle. Gold support is at $1,565 and $1,550. Resistance is $1,606 and $1,609.