Gold declines from $1000 an ounce on a spate of profit-taking
Precious-Gold retreats today after inclining for 4 days near $1000 levels impacted by the short positions by investors.
Last Friday, gold added $2.80 or 0.28% to close at $993.75 an ounce. Gold prices were setin
The metal touched a high of $996.35 on Friday, lower than Thursday's high of $997.40after breaching strong resistance level at $984.00 reaching to the next resistance at $996.00, where the metal slipped. The shiny metal inclined on Friday as the U.S. dollar extended its losses against majors. However, gold retreated as it approached the psychological barrier at $1.000 which was touched only twice in the metal's history; the thing that encouraged traders sell bullions and lock in profits on anticipated fall.
Moreover, prices closed on Friday near the highest record this year, where the metal advanced more than 4% in the prior week. Gold gained 12% this year as it played a decisive role as a safe haven and as a hedge against inflation. The turbulent data released this year in large economies together with the vulnerable financial sectors enhanced demand on gold as a safe harbor. Unemployment rate in the world's largest economy amounted to 9.7, marking the highest level since 26 years, according to the
On the other hand, global economies reduced their benchmark interest rate the most and injected money in markets to provide it with the apt amount of liquidity. World economies have announced $2 trillion to be spent this yearwhich revived demand on the shiny metal as an inflation hedge. The G-20 in their meeting last week decided to continue their stimulus plans and the ongoing help for the economies till it fully recovers. By the same token, oil prices, surged this monthtothe highest in 10 months, increasing the appeal of the metal as a hedge against oil-led inflation.
With respect to the U.S. dollar, it slipped for the second day to 78.02 relative to the openingat 78.14, as seen by the dollar index which tracks the dollar's movements versus six major currencies. Analysts predict the U.S. dollar to slide more this year with the vivid recovery signs. Now, there is a slight wave of carry trades fueled by the G-20 meeting which triggered recovery hopes.
In the stock markets,