Spanish bond auction

After a dramatic sell-off in gold yesterday, the gold price recovered rather quickly and settled in a fairly tight $1,645 to $1,655 range for most of the overnight session. Overnight, activity in the complex was largely confined to the white metals, as buying interest was perked up by the more genial sentiment.

This morning, we’ve seen the whole complex succumb to waning investor enthusiasm, most likely due to Eurozone uncertainty sparked by the approach of tomorrow’s Spanish bond auction. A strengthening dollar is adding to the downward bias of price of gold.

Gold support is at $1,635 and $1,623. Resistance is $1,658 and $1,670.