Gold Update

Spot gold is trading at $675.75/oz, on the low side of a $675.00 to $687.10 range. The precious metal was weighed earlier by the same increased risk aversion that prompted carry trade unwinds across the board overnight.

Gold dipped briefly below the July 2006 high at $676,now seen as pivot support but has since rebounded.

Bigger picture players have been active buyers on any dips, looking for gold to soon break over psychological resistance at $700 to revisit the May 2006 highs around $730.

Demand from global investors, looking at gold as an asset class, as well as from increased interest from India and China is expected to underpin gold going forward.

Monday, State Street Global Markets and World Gold Trusts (wholly owned sub of World Gold Council) announced that assets in the street TRACKS Gold Trust(NYSE:GLD) surpassed $10.0bn ($10.2 bn as per Feb 20) - making it the 7th ETF by assets in the US.