Precious metal prices decline while dollar climbs
Gold prices today eased their gains, as the federal currency is climbing versus major currencies ahead of Ben Bernanke, Chairman of the Federal Reserve Bank releasing a testimony to Congress regarding exit the stimulus measures from the U.S. economy, as they are worried they might be have to deal with the same woes in Europe regarding national debt.
The dollar gained strength ahead of the U.S. economy releasing reports later this week showing that retail sales climbed while the trade deficit shrank therefore increasing the appeal of the dollar in the markets.
Tuesday, gold climbed $16.20 or 1.53% to close at $1077.90 an ounce as the dollar lost strength six major currencies which are measured by the Dollar Index, declined yesterday to close at 79.73 while recording a high of 80.44 and a low of 79.56.
Among other precious metals; platinum is traded at $1497.50; palladium at $414.00; silver at $15.44; while, copper is at $298.77. Turning to commodity futures we see yesterday, S&P GSCI closed at 490.15 points recording a high of 493.06 points and a low of 483.19 points while RJ/CRB Commodity closed at 265.12 points recording a high of 265.86 points and a low of 261.52.
SPDR gold trust, the largest exchange-traded fund backed by bullion in the world, yesterday stood unchanged at 1,106.38 metric tons. Gold was set in London on Tuesday at $1071.25 per ounce inclining from $1068.00 per ounce during the AM fixing.
In addition, stocks in Asia climbed for the second day as a result of the continuing optimism in the markets, after European officials said they might aid Greece narrow its budget deficit, therefore easing the worries in the markets of the budget deficit spreading around European economies.
Turning to oil, we see that prices are declining as the biggest oil consumer, the U.S. economy released an industry report showing that gasoline and crude inventories climbed in the U.S. last week, therefore meaning that demand might take longer to recover which therefore discourages investors to enter oil markets.
Currently, spot gold is traded at $1074.71 an ounce recording a high of $1080.30 an ounce and a low of $1074.05 an ounce.