Gold shows slight advance
Precious-Gold inclined slightly today to $1124.20 despite the dollar's advance. The shiny metal slid in the last two sessions on speculations China will sell its gold reserves.
Yesterday, gold shed $1.50 or 0.13% to close at $1121.60 an ounce. Gold Price was setin London on Tuesday at $1120.00 per ounce during the PM fixing inclining from $1115.75 at the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, remained at 1,116.12 metric tons on March 9.
Gold prices have been gaining momentum from the Greek debt problem which spurred demand on it as a safe haven, especially as the inverse relation with the greenback became weaker. Yesterday, the Greek Prime Minister met President Obama who showed his readiness to help for measures being taken to deal with the calamity.
Today, the euro slipped slightly against the dollar to continue its consolidation that persisted over the last two weeks. German trade balance released today showed that trade balance surplus narrowed in January where exports, the catalyst of the German growth, slumped to -6.3% from 3.4%. The downbeat data along with the high debt in many European economies are affecting recovery and thereby the 16-nation currency.
On the other hand, the U.S. dollar gained versus a basket of major currencies as indicated by the dollar index which rose to 80.70 from the day's opening at 80.54. Still, the dollar is moving between support at 80.07 and resistance at 81.30 where the breakout of one of them may determine the dollar's direction in the coming period.
With regard to other commodities, oil bounced to $81.60 from $81.30 before the release of the EIA report later on today. Oil's rebound from over the last month gave an impetus to gold. Platinum edged up to $1612.00 from the day's opening at $1600.20; palladium soared to $474.00 from $466.70; and silver remained steady at $17.42, as of 09:30 GMT.