Gold advances today after opening the session, extending the gains recorded yesterday but still, the metal is volatile and fluctuating heavily ahead of the inflation data from the euro zone in addition to the unemployment figures, with mixed expectations and sentiment in the market, as this week comes to an end.
The yellow metal opened the Asian session today at $1614.47 per ounce, and recorded the highest at $1640.15 and the lowest at $1613.72, and is currently hovering around $1627.65 per ounce
The shiny metal traded heavily yesterday, as volatility dominated the market amid major fundamentals released. The closely watched major fundamentals yesterday were the German unemployment rate, U.S gross domestic product figures and finally jobless rate from Japan.
As this week comes to an end, September also comes to an end, while the yellow metal heads for the biggest monthly losses since 2008, after setting all-time record during the month at $1923.00 per ounce.
From the euro area the critical inflation data will be the flash CPI estimate for September which is expected to hold at 2.5% yet after German inflation unexpectedly rallied to 2.8% in harmonized terms maybe a drop in inflation is ruled out for the euro area.
In general, the shiny metal eased from the highest level as lawmakers in Europe recognized the consequences of a Greek default on the zone as a whole and on individual members and started to take further and more serious steps and actions not only to prevent the crisis from expanding, but also to overcome the crisis once and for all.
The shiny metal could ease further once the debt crisis is over in Europe, which will have a deep impact on the world as a whole, where the crisis has always forced downside pressures on growth and affected the pace of recovery negatively.
On the other hand, gold could trade higher by the end of this year in case European efforts failed to quell jitters over the general sentiment in the zone, where low confidence and volatility along with heavy fluctuations in the market could provide more demand of the yellow metal, especially when the world's largest economy is also suffering from the global downturn and U.K are heading towards stagflation.
Silver also advanced today extending the gains recorded in the past session, where after opening the session at $30.50 per ounce, the metal set the highest at $31.27 and the lowest at $30.43, and is currently trading around $30.79 per ounce.
Among other precious metals, Platinum also gained after the opening of $1521.30 per ounce, to currently trade around $1544.00. The metal recorded a high of $1513.30 and a low of $1522.50 per ounce.