Gold unchanged by the start of this week
Gold three consecutive trading day rally have been paused where the precious metal stroke the MA 100 trend line that acts as a strong resistance for the yellow metal. Investors sought gold as a safe investment after growth data from the US validated both investors and the Fed's concerns of economic easing and slowdown. The advanced GDP reading for the second quarter of this year came out to show that the US economy expanded by 2.4 percent during the second three months of this year, these figures are compared with 2.7 percent growth rate a preceding quarter.
China's PMI index dropped to 51.2 during the past month, compared with June's 52.1 rise, causing downside pressures on global recovery. The labor sector in the U.S. is also suffering from the aftermath of the worst financial crisis in decades; accordingly, with easing conditions in both the top leading economies in the world, fears aroused that global recovery will falter.
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, traded unchanged on the daily scale, where the index is currently trading at the opening levels of 51.43. The index reached the highest so far at 81.55 and the lowest at 81.37.
Gold typically moves in an inverse relationship with the greenback, but today's trading pattern seems to have forced the precious metal to narrow trade, where so far gold is trading at the same opening levels that were set today at $1181..40 an ounce, where it managed to reach the highest at $1183.90 an ounce, and the lowest at $1179.25 an ounce. For Today's Technical points for precious metals Click Here.
Silver traded higher than the opening levels, where the opening levels were set at $17.98 an ounce, where it is currently trading at $18.13 an ounce. Silver managed to reach the highest levels so far at $18.17 an ounce, and the lowest at $17.93 an ounce. Meanwhile, the world's most expensive metal, platinum, gained so far in today's trading by $20.0 reaching $1588.00 an ounce. Meanwhile, Palladium inclined where the metal traded $4.0 higher, at $498.00.