<h3>Gold is on the rise despite current conditions</h3>
By IBT Staff Reporter On
Gold is on the rise despite current conditions
Precious metals dropped throughout yesterday's trading session at a time U.S. and European stock indices declined, alongside crude witnessing a fall yesterday. Silver managed to drop by 0.59% to close trades at 18.47 in New York; whereas platinum followed by dropping 0.55% to close yesterday in New York at 1447.00; meanwhile, gold persisted on finish off trading with gains by 0.35% to close at $1168.20 per ounce.Meanwhile, precious metals today rose (precisely at 02:44 EST); where gold is trading at 1177.20 rising by 0.77%, and setting a new all time high; silver, on the other hand, compensated its loss yesterday by appreciating today by 1.25% to trade at 18.70; meanwhile, platinum is trading with gains by 0.69% at $1457.00 per ounce.However, crude's drop throughout yesterday's trading session did not force gold to close on a low in New York; whereas today the dollar's plummet and crude's rise helped gold maintain its bullish trend. Also, the fed yesterday stated that for the first time extremely low interests rates could be behind the uncertainty in inflationary levels, where expectations regarding inflation are uncertain; therefore, pushing gold to ascend and at the same time attracting more investors towards gold as a safe haven. Nonetheless, U.S. consumer confidence notably rose and opposed expectations for a possible drop due to a demand wave for gold; although the continuous rise of consumer confidence could cause overall demand on precious metals.Presently, worries are set on the slow pace in growth in the U.S. economy, in addition to suffering from a possible return of instability that would harm commodity prices, however, it does provide expectations of a drop in consumer demand on essential commodities, thus leading to commodity indices' depreciating yesterday; the S&P GSCI index plummeted and closed by 8.41 points, where it helped in raising oil inventory; whereas the RJ/CRB COMMODITY index witnessed a drop by 2.69 points and closed at 272.26, where non-gold precious metals played a major role in the index's plummet.The U.S. economy managed to expand by 2.8% throughout the third quarter, but growth was revised lower from the initial estimate of 3.5%. On the other hand, we see that Japanese exports dropped the least in a year, despite of the improvement seen in the Merchandise trade balance, worries were focused on the banking sector.All these facts make us expect gold to appreciate, whereas other precious metals are facing volatile fluctuations. The rise we still predict for gold is set over the medium term, since current gold prices are high and could trigger volatility and profit-taking waves every once in while. However, the initial target at $1300 per ounce, compared to current demand and medium term expectations.