Daily Market Review – Asian Session – Gold hits record high at $1488.5

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The Euro continued its downfall in this week’s first session, as the recent resurfacing of European debt woes weighed heavily on the single currency. The EURUSD pair opened up the Asian session at 1.4411 and continued in last Friday’s downward motion to see the pair drop by over 60 pips to a low of 1.4348 in mid Asian session. The Euro has met strong resistance the past couple of weeks around the 1.4500 area which it unsuccessfully attempted to convincingly break several times. The Euro also dropped against the Japanese Yen, reaching a 2 week low of 118.93.

The Sterling experienced some volatility against the Dollar, trading throughout the session around the 1.6305 levels, oscillating by +/- 25 pips. The Sterling has also opened slightly lower than last Friday’s close, but has held quite firm against the Dollar unlike its correlated currency, the Euro. Support for the British pound is seen around the 1.6280’s, a level which the GBPUSD pair failed to break past last Friday and also where the current 4 hourly 55 period moving average is at.

The Japanese Yen continued strengthening against the Dollar today, pushing the USDJPY pair to this month’s low of 82.85. The pair opened up at 83.18, slightly higher than Yesterday’s close, however moved in a downward motion throughout the session to drop some 30 pips before steadying off around the 82.93 level. Support for the pair is seen around 82.72 – the 55 Day moving average – with further support at the 81.50’s – a level which resembles 3 previous troughs between December 2010 and February 2011.

The Australian Dollar remained firm and close to its recent all time high of 1.0581 that was reached last Thursday in late US session, as it opened up this week at 1.0559. The Aussie dipped some 30 pips against the Dollar throughout the session, as further policy tightening in China weighed down on the currency, but managed to recoup losses and come back to trade close to the session’s open. Support for the Aussie is seen at 1.0488 – the 10 Day moving average, with resistance at 1.0581 – the current all time high.

Gold reached another record high today, peaking at $1488.5 per ounce and remained firmly close to this level as it traded just $2 under for most of the session around $1486.2. Global inflationary concerns have helped the precious metal appreciate, as well as ongoing concerns with regards to the resurfacing of European debt problems.