Precious metals and the start of a new week

Silver and gold dropped on Friday whereas platinum recorded a mild rise, according to New York closing. In London, gold, platinum and silver dropped as we witnessed gold's fixing decline from its morning level at 1140.00 towards $1124.00 per ounce. Meanwhile, gold closed at $1115.10 per ounce in New York, as silver dropped and reached $16.87 per ounce before closing at 17.13 down by 1.27%.

Last Friday's trading session witnessed major fluctuation for commodities and other securities; the DJIA and the S&P Commodity index rose, whereas the NASDAQ dropped. While in European markets trading has started strongly yet then limited the gains though managed to end still in the green. As for the start of the Asian session today Japanese equities slumped at the beginning of the session yet reverted to the upside near the end to close slightly lower from opening levels.

In addition; commodity indices rose on Friday as the S&P GSCI index advanced by 1.47, whereas the RJ/CRB index also gained by 1.34 despite of the dollar closing higher last week at 76.53 against a basket of six major currencies.

Precious metals were mainly trading to the downside last week, following the dollar's advance alongside crude's drop which encouraged profit-taking.

Meanwhile, precious metals today rose today in a correctional move to the bearish wave that dominated last week's trading; gold is trading with at its highs higher by 0.93% at 1125.00; silver also followed and is trading at $17.29 per ounce, a rise almost equal to gold; platinum however appreciated by 0.42% to presently trade at $1433.00 per ounce. As of 02:40 EST.

Dubai received $10 billion bailout from Abu Dhabi to salvage it from defaulting on its maturing debt which managed to spread optimism across financial markets, supporting gains as we entered into the European session. Dubai's exchange is considered to be one of the vital exchanges in the world for gold, thus also including some positivity to gold's trades today.

On the other hand, the Russian central banks' announcement of intentions to purchase 30 metric tons of gold to increase their gold reserves by 5.0% helped stabilize gold after the slump it witnessed. However, the bank is expected to proceed with this plan next week and on intervals. Despite the fact that the effect of the aforesaid events can barely be sensed on gold, yet it will generally positively reflect on investors' behavior.

As for this week; the bearish pace might decline, while keeping in mind that the bearish direction remains in charge over intraday basis, due to the bullish trend that the dollar is taking and the bearish one for crude. On the other hand, investors now are heading towards commodities as an investment, specifically after Dubai's credit woes depleted; thus, decreasing the direction towards precious metals.

Therefore, we might witness major fluctuations throughout this week, while leaning towards the downside; however, we should not forget that the overall main direction for gold over the medium term remains bullish, and heading upwards like numerous other metals. Nonetheless, gold is still a candidate for further record highs.