Bullion Strong In Tight Range Amid Mixed Technical Picture

Source:

Bullion continued to trade in its $630-640/oz range Tuesday as bulls seek another test of resistance, having failed in New York trade overnight.

Bullion continued to trade in its $630-640/oz range Tuesday as bulls seek another test of resistance, having failed in New York trade overnight. Gold rose to test the upside but found a lack of follow-through buying and eased back to the lower end of its current range. However, there was a modest recovery in late Asian and early European trade "as traders remain quite friendly to gold," a UK-based trader suggested. Gold was bid at $637.35/oz at 1019 GMT, up on its $632.60/oz spot close in New York.

"Gold is quite firm and it's looking good at the moment. There is a strong market at the moment but not a whole lot of demand," the trader said. Physical demand normally receives a boost at this time of the year with the onset of a wedding season in India, which usually prompts a high level of physical uptake.

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