Gold prices rebound from severe decline
Gold prices rebound on anticipations that black gold prices have fallen to the weakest level in nearly six weeks which meant that investors are encouraged to increase holdings in gold markets, therefore supporting gold prices.
Yesterday, gold inclined $9.10 or 0.76% to close at $1202.52 an ounce while the dollar gained strength six major currencies which are measured by the Dollar Index, fell to close at 83.90 while recording a high of 84.37 and a low of 83.75.
Turning to commodity futures we see yesterday, S&P GSCI closed at 491.04 points recording a high of 492.24 points and a low of 478.84 points while RJ/CRB Commodity closed at 258.24 points posting a high of 258.44 and a low of 253.50.
SPDR gold trust, the largest exchange-traded fund backed by bullion in the world, remained unchanged to mark 1,316.48 metric tons. Gold was set in London on Wednesday at $1193.25 per ounce inclining from $1186.00 per ounce during the AM fixing.
In addition, stocks in Asia climbed as a result of increased risk appetite from optimism that a double dip recession will not occur which therefore increased demand on higher yielding assets versus lower yielding asset.
Turning to oil, we see that prices are rallying to mark the highest level in a week as a result of higher retail sales from the U.S. while the lower oil inventories, meant that demand on energy products was increasing therefore boosted oil prices as investors entered markets.
Currently, spot gold is trading at $1204.38 an ounce recording a high of $1207.80 an ounce and a low of $1201.52 an ounce.