Gold Recovers from Overnight Lows, Faces Upside Pressures

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One Continental Europe-based trader said that he was not overtly bullish about its upside prospects. "I'm not too optimistic, it is being held up by Iran. Resistance at $667/oz is very strong but if we do get above that then it should be an easier run to $700/oz," the trader said...

Bullion was rather steady in Europe on Friday morning having recovered from a sell-off during US trading hours.

Gold was bid at $663.20/oz at 0855 GMT up on its spot close at $660.60/oz in New York and also modestly higher than its afternoon fixing in London on Thursday afternoon at $661/oz. Bullion slipped to an overnight low of around $655/oz but inched higher towards the end of the session. One Continental Europe-based trader said that he was not overtly bullish about its upside prospects. "I'm not too optimistic - it is being held up by Iran. Resistance at $667/oz is very strong but if we do get above that then it should be an easier run to $700/oz," the trader said, adding: "It is the end of the financial year in Japan -- which may have more of an impact on currencies -- and the end of the quarter in Europe and the US. Traders may not want to see too low a valuation. However, we could also see end of month/quarter profit taking - the beauty of this market is that it is unpredictable."

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