Gold inclines amid uncertain global recovery
Precious-Gold advanced today as downbeat reports released recently from major economies enhanced demand on the metal as safe harbor.
Spot gold is traded at $1201.35 an ounce after recording a high of $1201.83 and a low of $1195.65, yet the metal needs to close above $1200 critical level to continue its rise.
Data from U.S. and China are raising concerns while in Europe the recent advance is losing momentum. The Fed announcement to continue bond buying along with keeping interest rate near zero suggest that recovery is in jeopardy and the world's largest economy may fall in another recession.
The previous day, U.S. trade deficit widened ahead of the release of jobless claims later in the day. Also, BoE lowered growth forecasts to 3.0% from 3.6% estimated in May.
However, second-quarter GDP for euro zone released tomorrow is expected to affect movements in markets, while today industrial production for the 16-nation economy is predicted to tick down in June.
Yesterday, gold shed $5.90 or 0.49% to close at $1197.82 an ounce. Gold Price was setin London on Wednesday at $1205.50 per ounce during the PM fixing inclining from $1198.00 during the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, surged to 3.04 metric tons on August 11 to 1,285.79.
In the currency market, the U.S. dollar halted its three-day rally against a basket of major currencies as depicted by the dollar index which retreated to 82.17 from yesterday's closing at 82.37, yet it did not affect dollar-denominated commodities as gold and oil rose today.
In stock markets, Asian shares dropped for the fourth day following losses in U.S. equities as concerns with regard global outlook reduced risk appetite.