Gold Remains Hovering Around its Highest Prices
Precious metal markets are witnessing limited trading, where a glimpse of wide profit-taking is seen; meanwhile, this profit-taking does not necessarily always include gold, where we see it trading near its highest prices on record. Despite of silver and platinum's fall in yesterday's trading session by 1.54% and 1.52% respectively, we still see that gold managed to maintain some gains and closed higher at 1105.80 by 0.26%. However, Gold managed to close with gains in London as well, where it has continued its positive trading also gaining 0.21% to trade at $1108.10 per ounce.
Gold is being demanded despite of its strong rally, where we see major caution in the silver and platinum trading session. Meanwhile, signs of recovery have appeared on the global economy, but the extent of this recovery is worrying traders; thus, we see caution in financial markets preventing platinum and silver from stability and heading to the upside. However, we cannot neglect the rise of either, but compared to gold's stable direction we see that demand on gold looks more steady then these metals.
On the other hand, commodity markets traded negatively yesterday; where the S&P GSCI index fell by 4.94 points and closed at 508.42, we also see that most commodity indices fell yesterday as well due to crude's plummet. Crude sharply traded yesterday at $78.82 per barrel, lower than its opening levels around $79.20 per barrel; where crude's depreciation was similar to the fall of both silver and platinum due to the speculations and profit-taking heavily within these commodities every once in a while, especially with negative data released from the European economy yesterday, while jitters about the U.S. and UK economies persist.
In spite of the improvement overshadowing Asian and Pacific economies; traders need to be assured over whether major economies have indeed recovered, so then they could be sure that the economic situation around the world has stabilized. Silver and platinum are considered to be, to a certain extent, industrial metals; specifically platinum, which thus causes a decline in demand.
Meanwhile, demand on gold seems to be showing clear stability, whether gold is demanded either as a safe haven or as an asset investment; however, numerous sides are demanding gold as an investment and are speculating it in the market. Consequently, all these demands are pressuring gold into leaning towards the upside, despite of the volatile fluctuation overshadowing financial markets.
Today, gold traded at $1108.10 per ounce precisely at 02:30 EST; whereas silver rose by 0.40% at 17.37; platinum however, traded at $1360.00 per ounce today.
The dollar's depreciation against a basket of foreign currencies is causing demand on precious metals, specifically gold, to continue. Today, we see that some markets are going to close their doors due to Veteran's Day, where we could witness a fall in the volume of trading accompanied by fluctuations and some bearish correctional moves; meanwhile, we see that these trading sessions could cause a core change in gold's bullish medium terms direction.