Dollar's decline forces precious metals upward
Today's and last Friday's trading was marked by metals appreciation. The $61million awaiting the Greek government's command for aid has restored confidence in European financial markets, as investors rid their hands of the dollar in search for riskier higher yielding assets. The greenback's relentless fall has contributed to a rise in precious metals.
Gold closed at $1161.40 last Friday, to gain 0.89% before the end of the week's trading. Platinum climbed 0.47% to close at $1721.00 per ounce, while silver made a giant leap of 1.83% to close at $18.39, putting an emphasis on the speculation in the market at the expense of the dollar's decline, as silver is usually the main instrument for such speculation.
Raking in 1.41 points the S&P GSCI index settled at 542.14 on Friday, meanwhile the RJ/CBR index had also ascended to close at 276.13 after gaining 0.88 points. The upward movement of commodities was caused by increased confidence in markets as well as greenback's decline.
Precious metals have continued soaring today, as gold is trading around 1163.80 up by 0.21% at 2:51am GMT. Silver is in the meantime trading 0.60% higher at around $18.50 per ounce, while platinum has been stable around New York's closing at 1712.00.
Gold advanced to its four-month high, as the concerns over the European economy and aftershocks of the decision for the Greek bailout are to add turbulence to the precious metals market. Speculation and alternative investment in gold were not stifled by declining demand for a safe haven. Fluctuations are to reign through the precious metals market with anticipations of several corrective downward movements, especially after the sudden surge uphill witness in the last two days. Nonetheless the general movement is still bullish.
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