Gold levels-off after two week-high
Precious-Gold remains steady near two-week high on Monday trading as it approached strong resistance around $1,670 levels.
The yellow metal is affected by many factors, yet the most important are the progress in the U.S. economy, or in other words opposite to the dollar movements, and the latest developments in the European debt crisis.
Last week, gold prices were boosted by the Fed comments which referred to possible QE3 if needed. U.S. annualized GDP for the first quarter showed 2.2% expansion compared with the prior 3.0% advance and median estimates of 2.5%, while today, eyes will track U.S. personal spending and Chicago PMI.
On the other hand, the green currency fell sharply for the fifth straight session against a basket of major currencies; the dollar index is currently moving around 78.72 compared with the day's opening of 78.78, where the breach of 79.30 level last week paved the way for the undergoing drop.
In Europe, worries are expected to continue with the main focus to remain on Spain, especially after last week's downgrade from S&P.
Today's data showed that Spain's first quarter GDP preliminary reading showed 0.3% contraction, in line with the advanced reading, better than forecasts of 0.4% contraction, before Spanish government gives a brief today to discuss steps to trim its deficit and selling 2015 and 2017 bills later in the week.
In addition, still there are political worries in France and Greece as elections are about to show results of the winner who may affect efforts by European officials to cut budget shortfall.
The shiny metal is currently trading around $1,662.15 an ounce, where it is currently facing strong resistance at $1,670 which represents SMA 100 level. Crude oil for June's delivery is meanwhile trading around $104.88 a barrel near the day's opening.
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