Gold little changed after yesterday's advance
Precious gold retreated slightly to $1233.20 an ounce after advancing yesterday to a high of $1236.65. Gold breached strong resistance yesterday at $1.225.89 which paved the way for the metal's incline.
In the previous period, the gold managed to reach new high records as a safe haven amid the looming debt crisis in Europe which prompted investors to resort to refuges.
The dollar and yen also advanced against higher-yielding currencies since the beginning of the current year but last week and so far this week the two currencies are paring some of their earlier gains.
Today, the euro is traded near the highest level in a week against the yen but showing decline against the dollar as it fell from resistance at 1.2330. However, the debt crisis is still persisting in the euro zone and policy makers are introducing new measures to prevent debt woes from curtailing recovery, but yesterday we saw some government bond sales by Spain and Ireland which gave support that European nations can still fund their debt.
On the other hand, the dollar index, which measures the strength of the dollar versus a basket of major currencies, surged today to 86.31 after getting support at 85.96.
The improvement seen recently is stemming from the upbeat data released from Asia which provided evidence that global recovery is strengthening which in turn enhanced demand on stocks and higher-yielding assets.
European shares bounced on Wednesday for the sixth straight day following gains in Asia shares which spiked to four-week high.
Yesterday, gold added $13.00 or 1.06% to close at $1233.90 an ounce. Gold Price was setin London on Tuesday at $1225.00 per ounce during the PM fixing from $1223.00 in the AM fixing.
Markets are girding for important housing an industrial data from the U.S. which may change movements in markets after its release, while the U.K. will released unemployment data and euro zone will release CPI for May.