Precious Metals are Getting Dizzy!
If precious metals could describe its condition, it would a condition of extreme dizziness from the confusion it had been witnessing throughout financial markets around the globe, including metal markets. We witness a rush of liquidity for precious metals; raising their prices and wanting a safe haven against the expected inflation. However, we are still feeling optimistic about the global economy finding a way to recover, where we see traders pessimistic, again, pointing that the recover the global economy is witnessing is weak, at a time where demand is weak and inflation levels are low. These reasons reflect what seems to be what is for sure in financial markets, where extreme confusion is hitting markets badly; one of them would be precious metal markets.
Yesterday's trading witnessed some incline in crude oil's barrel price, while the U.S dollar's exchange rate declined, where U.S stock and main European indexes; where Asian indices followed its footsteps as well. This is an effect from investors heading towards optimism, where the global economy has started showing signs of recovery. This optimism also had a hand in the increase in the prices of numerous commodities; where the S&P GSCI index inclined in New York's trading yesterday about 3.73 points, to close trading at level 444.65 points; trading in the beginning of the week showed pessimism from a declined in numerous stock and trading indicators, where Friday had shown a decline in commodity indices and a major incline in the U.S. dollar's exchange rate. The crude oil's barrel price declined as well, where the reason claimed to be the fears that economic global recovery isn’t enough to make the global economy stabilize and dispense of governmental and central banks' stimulus plans around the world.
It seems that financial markets and traders are extremely confused at the meantime within financial markets.
In yesterday's trading gold's price declined to achieve its lowest at 988.00, where it found demand to return to reduce losses that it accumulated, closing at level 990.50 with a minor decline 0.02% in New York, after achieving its highest incline of 997.50; silver also managed to replace all its losses and increase its price per ounce from its lowest of 15.96, to close with an inclined 0.75% at level $16.16; platinum followed in their footsteps by inclining from its lowest at 1267.00, to close on a minor decline 0.16% at level $1271.00 per ounce.
For today, precious metals are trading within a very narrow range, where prices tended to incline a bit; gold's price is trading exactly at 2:36 EST at level 991.40; silver is trading at level 16.16; platinum is slightly positively trading above at level $1276.00 per ounce. This trading leaning to the positive side, could point to the global economy witnessing improvement! When looking elsewhere we notice that oil's barrel price inclined to trade above levels $67 before returning to decline a little.
We have always pointed out that precious metals will trade with high fluctuations on an intraday and short term basis, because of the global economies unstable future that is appearing currently. This confusion cause precious metals to halt to continue inclining, especially after the 20 greatest countries meeting, alongside the wait for the
We do not the confusion to end either on the intraday or short term basis, where we expect this situation to remain as traders are stuck, while fears overshadows and capital investments remain timid and is not willing to risk to continue within financial markets. This could cause a major fluctuation in money markets, alongside the decline the rest of trading witnessed this week, while we await the release of