Gold narrow trades as uncertainty dominate markets
Gold have been fluctuating between gains and losses over the past two weeks where uncertainty dominated markets especially as investors felt pessimistic from the slowing conditions on a global scale. Investors awaited the release of EU stress test results to find out that the banking sector in the European continent is strong, but doubts regarding the difficulty of the test did not help the market to recover as it should.
Gold is affected by the improving conditions in the US, despite the fact that law makers in the country continue to state that the US will face a rather Moderate growth pace over the upcoming period, accompanied by elevated unemployment and persistent tightening in credit conditions.
US stocks followed its peers in Europe as it closed on Green where optimism from the US housing sector managed to dominate the scene and help boost investors' confidence. The US New Home Sales index jumped in the month of June by 23.6 percent at an annual pace of 330 thousand units, compared with market expectations of 3.7% at an annual pace of 311 thousand units.
Hedging techniques are absent from the market so far, where investors continue to focus on safety during the Asian session, while shifting back to risky investments and high yielding assets throughout the European and U.S. session, accordingly, seeing fluctuation in gold trading over the past two weeks.
The U.S. dollar index, which tracks the performance of the dollar against a basket of currencies, rose slightly on the daily scale. The index is currently trading at 82.009, compared with the opening levels of 81.985 where the index reached the highest so far at 82.112 and the lowest at 81.915.
So far, gold is rising on the daily scale. As of 07:43 GMT, gold contracts for immediate delivery rose to $1186.07 an ounce, compared with the opening levels of $1183.20 an ounce, where it managed to reach the highest levels for today at $1186.50 an ounce and the lowest t $1182.05 an ounce. For Today's Technical points for precious metals Click Here.
Silver traded little changed at the same time, where the opening levels were set at $18.17 an ounce, where it is currently trading at $18.18 an ounce. Silver managed to reach the highest levels so far at $18.21 an ounce, and the lowest at $18.11 an ounce. Meanwhile, the world's most expensive metal, platinum, gained so far in today's trading by $10 or reaching $1554 an ounce. Meanwhile, Palladium inclined where the metal traded $3.0 higher, at $472.00.