Gold Shines amid Darkness within Markets!!
After Friday's disappointing U.S. fundamentals, alongside instability overshadowing financial markets around the world, including stocks and commodities, we see precious metals stabilizing with general positivity. Gold was seen enjoying the highest demand throughout last week despite of the decline seen along the week.
Gold managed to rise on Friday, where it closed at $1002.30 per ounce rising from 985.40; affected by demand helping it gain 0.24% after the decline it had witnessed. Instability and volatility across global financial markets and bearish movement for numerous equity indices and commodities last Friday pushed investors to look for other safer investments. Gold, for that, seemed to be the brightest metal of all after this pessimistic wave managed to overshadow financial markets, alongside the haziness surrounding the U.S. economy. Though the world’s largest economy has been providing signs of stability, yet the outlook does not look as strong as many hope and resuming growth remains to be surrounded with sluggish expectations.
On the other hand, Silver ended Friday in red, closing with a 1.28% decline in New York at 16.14. Nevertheless, silver witnessed strong demand when it reached its lowest levels at 15.88; whereas platinum was able to close at 1279.00, after inclining from its lows around 1258.00, yet it was unable to rise beyond its opening levels.
Today, with the start of a new week, precious metals were biased to the upside within the Asian session, amid the decline in numerous major stock indices. However, investors are now targeting precious metals as a safe haven, due to uncertainty in the global economy's improvement and the time it needs to stabilize.
On Friday, major commodity indices had endured losses, where the S&P GSCI recorded a drop of 5.38 and closed at 545.28 in New York; Bloomberg's UBS index also declined 16.19; whereas, RJ/CRB COMMODITY declined by 2.68 and closed trading at 252.87 points.
Finally, crude inclined in today's trading, where the U.S. dollar is leaning to the downside, assisting precious metals in their upside move. However, amidst instability and fears the global financial markets have been witnessing, the dollar’s decline alongside crude's incline will cause precious metals to continue their bullish move over the medium term. As for intraday and short basis, they might witness strong fluctuations amid the general upside move.