Euro Under Pressure; Gold Falls Slightly

Mark O’Byrne submits:

Gold: Gold fell 0.5% yesterday and is trading at $1,102/oz. In euro and GBP terms gold is trading at €797/oz and £696/oz. Support for gold is currently seen at $1,076/oz and resistance at $1,115/oz.

Risk aversion is making a comeback in markets internationally which has seen equity markets in Asia and in Europe this morning come under pressure after yesterday’s falls on Wall Street. Gold has fallen slightly this morning on continuing strength in the dollar and weaker oil (on falling US demand).

Investors will be keeping a close eye on comments from ECB president Jean-Claude Trichet at the central bank’s press conference for any comments on the fiscal health of peripheral eurozone states as fears of a sovereign default persist. Concerns over dislocation in European sovereign debt markets leading to contagion in the eurozone will result in the euro coming under further pressure (against the dollar and gold).

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