What does the last day of the first quarter hold for precious metals enigma
Throughout the first quarter of this year, gold trade at levels between 1044.00 and 1151.00, while as of February, the yellow metal has stayed within the range of $1084.00 and $1133.00 per ounce. However, after thorough scrutiny we see that during the first three months, Gold had been priced between $1125.00 and $1090.00 per ounce, as it is expected to finish the quarter with a slight rise.
Gold has been relatively deprived of any brusque movement, with a strong dollar restricting its upward movement, and the Greek crisis and stagnant European economy pulling it from a continuous fall. A narrow band of trading has been marked by coalescing speculative and safe haven demand in the first quarter. The growth of British economy in the fourth quarter of 2009 by 0.4%, exiting the longest running recession in the century, sided with growing consumer confidence across the Atlantic have pressed the gold to decline slightly.
Gold closed yesterday at $1103.30 per ounce, dropping by 0.51%. The Dow Jones had risen to 10907.42, pulling investments into stocks away from precious metals safe haven. Japanese deflation and subdued inflation in the U.S. and the world's biggest economies are putting downward pressures on the precious metals, specifically gold.
Trading at 1107.80 at 2:31am, the gold had risen by 0.41% since closing yesterday, meanwhile silver, after closing at 17.28 yester, had risen by 0.64% to trade at 17.39 after growing demand on the metal. Platinum had gained $18.00 after closing yesterday, and has experienced appreciation since settling at the $1600.00 mark, to trade today at 1635.00.
The safe haven provided by precious metals, and gold in particular, was abandoned after fears over Greece collapsed, signs of recovery were seen in the U.S. and European economies and the vivid improvement in the Asian and Pacific economies. Though precious metals have remained somewhat lucrative after the slight drop for the dollar, as some investors sought some speculative opportunities. This deprives trading of excitement, while great fluctuations are expected to reign throughout the week.
S&P GSCI index gained 1.88 points and closed at 526.46, while the RJ/CBR added 0.89 to close at 273.72 in New York. This rise, mainly due to energy and investment assets, was sided by opposite movement in the other hand of the scale, where investors are turning away from precious metals.
Investors may be rethinking their speculative and investment tactics, by adding new assets to their portfolios or increasing or decreasing current investments as this year's first quarter comes to an end. Investors should be cautious during these final days of the first quarter as the movements in speculative dominated markets are hard to predict, especially when we await Friday's labor report from the United States.
Highly important data is anticipated today from Europe that includes inflation and unemployment in the European Union. January GDP is awaited from Canada, while the U.S. is expected to release data on the its Oil Reserves. Thus, prudence is needed today in the market until a clear path is seen that investors and speculators will take, with the above data causing great turbulence in the market.
Tomorrow we expect the fog around the market's movement to dissolve, while today we bid the first quarter of the year farewell. Today we keep our previous predictions of a possible rise in the general trend of precious metals, with the possibility of fluctuation amid profit taking and corrective movements in the short term.