Fundamental Precious Metals (2010-12-06)

Gold little changed amid global concerns

Gold was little changed on Monday trading in the absence of economic fundamentals from major economies today.
The shiny metal gained on Friday to rise to a high of $1415.70 an ounce after an abysmal US job report which enhanced demand on the metal as a safe haven.
On December 2, gold added $29.60 or 2.14%, while gold price was setin London at $1403.50 per ounce inclining from $1391.75 during the AM fixing.
SPDR gold trust, the world's largest exchange-traded fund backed by bullion, edged down to 1,298.03 metric tons on Friday from 1,298.44 on December 2.
Last Friday, the infamous Nonfarm payrolls unexpectedly showed that unemployment jumped to 9.8% in November from 9.5% in October while Nonfarm payrolls soared by 39,000 in November, below expectations of 155,000 advance.
Fed chairman Ben Bernanke said that unemployment may take five years to come back to normal levels and said the $600 billion bond purchase announced in November may be increased.
After the improvement seen in the latest US data, unemployment surprised markets, putting pressure on the dollar to halt its rallythat started last month.
Gold benefited from the dollar's slide in the last three sessions while todaythe greenbackrebounded against a basket of major currencies as depicted by the dollar index which surged to a high of 79.64 compared with the day's opening at 79.31.
Moreover, gold has took advantageof the mounting debt woes in Europe, especially after the approval of the 85 billion-euro aid package which failed to restore confidence in market on speculations the contagion will spread to other highly indebted nations in the region.
Today, European finance ministers will meet in Brussels to discuss the possibility of raising the 750 billion euros lifeline announced in May for the high likelihood that Portugal and Spainwill ask for a bailout.
Spot gold rose to a high of $1418.72 an ouncewhile recordeda low of $1408.90 from the day's opening at $1414.05, whereas oil slipped to a low of $88.87 a barrel from Friday's closing at $89.30.
Among other precious metals, platinum inched down to $1728.00 from the day's opening at $1728.70, palladium plummeted to $766.50 from $771.50, and silver retreated to $29.52 from $29.80, as of 09:15 GMT.