Precious metals make a comeback this week
Precious metals kick off the week on a high note, making noticeable progress following a week of continuous free-fall. Last week's steep decline can be viewed as mass profit-taking triggered by Europe's decision to back its own single currency, sided by Germany's attribution to the European aid package to resolve growing budget deficits in the continent.
Germany's decision to put restriction on several trading practices instilled fear and doubt into speculators that surged into big profit-taking, thus affecting precious metals and even gold.
Gold finished the week at 1177.00 in New York on Friday, falling from the record high mark of 1249.00. Silver recorded a huge drop to 17.64 last week, while platinum declined to 1505.00.
Precious metals are experiencing appreciation after last week's slump; speculative forces took advantage of the low prices as did the jewelry industry, bolstering demand. Also the rise in oil prices and ascending dollar index, have also pushed metals upward.
Gold has gained 1.01% reaching a current price of 1188.90 at 2:38am EST, while silver advanced 2.04% to 18.00 and platinum is trading at 1523.00, up by 1.20%.
Nikkei index dropped slightly today, despite the fact that most Asian stocks inclined. Investors were prompted to seek safe haven in precious metals, fearing the measures adopted by the U.S. Senates won't be able to prevent the crisis.
Uncertainty reigns this week, with fears of a deepening crisis in the world's economy opposing optimism of a recovery encouraged by measures and regulations in the U.S. financial sector and the European aid package.
This is bound to add turbulence to the precious metals market, along with other financial markets. Intraday expectations remain vague until traders make a clear sign for the direction this week, nonetheless, we stick by our previously projected general bullishness.