Gold prices reverse their gains on bright anticipations
Gold prices today reverse their gains, as the federal currency is climbing versus major currencies; there are anticipations in the markets that Greece today will reveal more plans on narrowing the budget deficit, therefore reducing the appeal on gold as a safe haven.
Tuesday, gold climbed $16.50 or 1.48% to close at $1134.45 an ounce as the dollar lost strength six major currencies which are measured by the Dollar Index, declined yesterday to close at 80.46 while recording a high of 81.28 and a low of 80.37.
Among other precious metals; platinum is traded at $1574.00; palladium at $439.00; silver at $16.96; while, copper is at $337.62. Turning to commodity futures we see yesterday, S&P GSCI closed at 518.57 points recording a high of 523.31 points and a low of 510.13 points while RJ/CRB Commodity closed at 275.13 points recording a high of 276.28 points and a low of 272.71.
SPDR gold trust, the largest exchange-traded fund backed by bullion in the world, yesterday climbed 4.569 tons to 1,111.556 metric tons. Gold was set in London on Tuesday at $1126.50 per ounce inclining from $1116.00 per ounce during the AM fixing.
In addition, Asian stocks are climbing on the bright speculations in the markets which mean that when Greece continues to take measures to narrow budget deficit, will boost confidence levels in the markets as investors look forward to a global economic recovery. When investors are optimistic, they usually tend to turn to higher yielding assets therefore supporting the rise in stock markets.
Turning to oil, we see that prices are climbing as a result of the world's biggest oil consumer, the U.S. economy releasing an industry report showing that distillates supplies declined, therefore meaning that demand on energy products is improving, which attracts investors to oil markets.
Currently, spot gold is traded at $1134.00 an ounce recording a high of $1136.25 an ounce and a low of $1131.95 an ounce.