Gold Recovered From An 11 Month
Gold recovered from an 11 month low of $762.55 recorded in the Asian morning. A rebound in oil was the catalyst for short covering activity in gold, with the market reacting to the surprise OPEC production cut. Gold experienced physical buying and leverage account demand, but prices still remained bearish, with gains limited to $779.40 highs in the European time zone. Movement is expected to maintain wide ranges as directional bias is driven by dollar crude price movement. However, risk is the downside now after Tuesday's sharp break down in prices.