Gold prices rebound from biggest decline in a month
Precious metal prices rebounded today from the strongest plunge witnessed in a month, as once again the appeal of gold increased as investors turned to gold seeking a safe-haven against the debt crisis in Europe, as there are concerns that it might undermine global growth prospects.
Also gold prices fell heavily yesterday, as the dollar inclined in markets versus major currencies therefore reducing the appeal of gold as an alternative investment.
Yesterday, gold declined $23.90 or 1.90% to close at $1233.25 an ounce while the dollar gained strength six major currencies which are measured by the Dollar Index, inclined to close at 86.03 while recording a high of 87.01 and a low of 85.08.
Among other precious metals; platinum is traded at $1589.00; palladium at $490.00; silver at $18.77; while, copper is at $295.75. Turning to commodity futures we see last yesterday, S&P GSCI closed at 512.83 points recording a high of 520.24 points and a low of 508.45 points while RJ/CRB Commodity closed at 263.69 points recording a high of 267.02 points and a low of 262.25.
SPDR gold trust, the largest exchange-traded fund backed by bullion in the world, stood steady at the record high of 1,307.963 metric tons. Gold was set in London on Monday at $1254.50 per ounce declining from $1259.50 per ounce during the AM fixing.
In addition, stocks in Asia halted their gains, as today they declined for the first time in nine days, as once again the fears of the debt crisis of Europe is causing investors to avoid higher yielding assets, which is weighing on stock markets causing them to tumble as investors step out of them.
Turning to oil, we see that prices are also slipping for the first time in three days after the sovereign debt in Europe overshadowed China's projected increased demand on oil, especially as they are considered the second biggest oil consumer in the world following the United States.
Currently, spot gold is trading at $1236.80 an ounce recording a high of $1240.17 an ounce and a low of $1231.80 an ounce.