Gold narrow trades as risk appetite improves
Gold might be heading for the biggest monthly drop this year, after recording a historic high of $1265.30 an ounce in June. Confidence among investors continue on supporting risk appetite thus, traders are targeting more high yielding assets and stocks, while discarding trades in low yielding assets and commodities, as both are considered a safe investment.
Economic indicators from Europe singled that the recovery is still intact, and stronger than expected, while conditions in the US seems to have eased over the past few months. the Fed's beige book shed the light on the matter as it was confirmed by Fed's Chairman, Ben Bernanke as he signaled that the outlook for the US is Unusually uncertain.
The future outlook in gold trading signal that the precious metal will still lose its appeal among investors as confidence and risk appetite continue to mount among investors, while others state that low gold prices might spur natural demand for profit and cause another rise in trading over the upcoming period.
The U.S. dollar index, which tracks the performance of the dollar against a basket of currencies, declined on the daily scale, where the index is currently trading at 81.54, compared with the opening levels of 81.53. The index reached the highest so far at 81.67 and the lowest at 81.48.
Gold typically moves in an inverse relationship with the greenback, where So far, gold for immediate delivery is trading at $1168.61 an ounce, compared with the opening levels at $1168.17. Gold reached the highest levels in today's trading at $1170.69 an ounce, and the lowest at $1165.28 an ounce. For Today's Technical points for precious metals Click Here.
Silver traded slightly lower than the opening levels, where the opening levels were set at $17.59 an ounce, where it is currently trading at $17.57 an ounce. Silver managed to reach the highest levels so far at $17.64 an ounce, and the lowest at $17.50 an ounce. Meanwhile, the world's most expensive metal, platinum, lost so far in today's trading by $4.0 reaching $1551.0 an ounce. Meanwhile, Palladium inclined where the metal traded $8.0 higher, at $484.00.