In Asian markets, interest in gold price remained severely lacking

The downward pressure on gold price continued into the early part of the New York trading session, with already negative sentiment (especially regarding the prospects of central bank easing) compounded by ECB President Draghi’s remarks after the bank’s interest rate announcement. The emphasis he placed on inflation concerns is most likely what has spooked the markets as it reduces the possibility that the central bank will engage in any further monetary easing. However, he did attempt to balance these remarks by saying that he did not think that he was being overly hawkish and that “any talk of exit strategy is premature”.

In Asian markets, interest in gold price remained severely lacking, with the lower price levels even failing to attract significant physical buying. Nevertheless, there was enough interest again (as there was the previous day) to keep prices relatively stable. This morning, we’ve seen cautious buying give the complex a moderate lift.

Gold support is at $1,607 and $1,591. Resistance is $1,644 and $1,664.