Market remains reluctant to sell gold aggressively ahead of the European Summit on Friday

Gold is pushing towards $1,740 amid very thin volumes in the gold market. The market remains reluctant to sell gold aggressively ahead of the European Summit on Friday. As far as investment demand is concerned, funding stress, especially for European banks continues to elevate, as is evident from the Euribor/OIS spread which has moved higher again in recent days.

Gold support is at $1,709 and $1,690. Resistance is $1,740 and $1,752.