Market positioning cautiously confident on gold

The reaction of Gold to S&P’s downgrade of nine Eurozone members late last Friday was mostly driven by the consequent dollar strength. As such, Gold lost ground, with safe-haven associated buying providing little or no support. Overnight in Asia , we initially saw the downward trend persist as participants expected further dollar gains. However, with the dollar remaining relatively stable against the euro, we saw some light Asian buying arrest the downward momentum. With
Asian equity markets ending the day mostly down, some of this buying could be attributed to a return of safe-haven interest in the region. Market positioning cautiously confident on gold

Gold support is at $1,629 and $1,615. Resistance is $1,655 and $1,665.