Gold trades in narrow range for second day
Since the start of this week, gold have been narrow trading as investors tilted towards risk investments, accordingly, putting downside pressures on the precious metal prices to continue on trading within narrow ranges. Throughout yesterday's trading session gold for immediate delivery opened trading at $1181.50 an ounce, while closing at $1182.62 an ounce after setting the highest levels at $1190.30 an ounce and the lowest at $1174.36 an ounce.
Global economies recovery is strengthening and gaining momentum, therefore, pressuring investors to target risky investments and high yielding assets, reducing the precious metal appeal as a safe investment. Euro-Zone and the U.K. manufacturing reports yesterday showed that the sector in the region continue on supporting growth and recovery, while today's industrial data would provide further proof to investors that recovery is still intact, even at a faster pace than in the US, which accordingly, will boost demand for risk, thus, causing a drop in commodity prices and low yielding assets.
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.
So far, the dollar is suffering against majors, despite the slight rise in the U.S. dollar index on daily basis. the US Dollar lost its appeal over the past period where the Euro continue on ascending as it's currently trading at three-month high, while the pound managed to ascend to trade at five-month high against the dollar.
The US dollar index, which tracks the performance of the dollar against a basket of currencies, inched higher on the daily scale, where the index is currently trading at 80.936, compared with the opening levels of 80.932. The index reached the highest so far at 81.04 and the lowest at 80.87.
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 near the opening levels of $1182.67 an ounce, as it's trading at $1182.91 an ounce. Gold managed to reach the highest at $1184.47 an ounce, and the lowest at $1179.35 an ounce. For Today's Technical points for precious metals Click Here.
Silver traded unchanged and at the opening levels set at $18.34, while it reached the highest levels so far at $18.41 an ounce, and the lowest at $18.29 an ounce. Meanwhile, the world's most expensive metal, platinum, dropped so far in today's trading by $6.0 reaching $1590 an ounce. Meanwhile, Palladium inclined where the metal traded $1.0 higher, at $508.00.