FXstreet.com (Barcelona) - The gold's decline from $1,168/oz, today's high, has found support at $1,154/oz during the European session with the XAU/USD rising back to trade above $1,160/oz. Currently the pair is trading around $1,161.50/oz, 0.20% above today's opening price action at $1,158/oz.
Fed Chairman Ben Bernanke has commented yesterday that US will have an extended period of low interest rates with the inflation subdue for some time. Words could reduce the appetite of gold as hedge.
James Moore, analyst at The Bullion Desk, comments: After a relatively flat Asian session the stronger dollar put gold back under pressure, leading the yellow metal to a two-week low of $1135.20 before consolidating around $1140-45. The greenbacks reaction to Bernanke's comments led gold to close at $1161 and the metal has seen a mixed start so far this morning as traders continue to track the dollar. The expectations of record low US interest rates will likely limit substantial weakness in gold however the metal still remains at risk to pressure as further profit taking is expected in the run-up to year-end.
The Aussie's decline against the Dollar from intra-day high at 0.9165 has found support at 0.9080 in the early European session with the AUD/USD bouncing to trade above 0.9100 level, close to 0.9120.