Gold clams down after hitting record high
Precious-Gold ticked down after hitting new record high yesterday on some profit-taking actions by investors, but the metal may rebound again to continue its rally due to mounting global concerns.
Spot gold rose to a high of $1425.10 an ouncewhile toucheda low of $1418.02 from the day's opening at $1423.62.
Yesterday, gold added $9.20 or 0.65%, while gold price was setin London at $1415.25 per ounce inclining from $1411.50 during the AM fixing.
Gold rose yesterday as a result of European debt concerns and possible increase in US QE2 announced last month.
European Finance Ministers in their meeting in Brussels the previous day agreed to rule out any rescue for Portugal and Spain or to expand the 750 billion-euro package announced in May, while Germany rejected issuing European joint bonds.
There has been split among members, especially Germany as Chancellor Angela Merkel sees that member states should depend on themselves in solving their problems instead of relying on external aid.
Later on Today, Irish Parliament will vote for accepting the 85 billion-euro aid granted from the EU and IMF in November.
The euro managed to rebound slightly today, yet it remains under pressure as still many investors believe that Portugal and Spain will ask for surveillance package very soon.
The dollar, on the other hand, dropped against majors as Ben Bernanke's announcement that adding to the $600 billion bond purchase is possible pushed the greenback to the downside.
The dollar index, which tracks the dollar movements against a basket of six currencies, slipped to a low of 79.32 compared with the day's opening price at 79.64.
Crude oil benefited from the dollar's slide to rise to a high of $89.52 a barrel from the day's starting point at $88.90, despite the drop in Asian shares which was affected by the yen's advance.
Among other precious metals, platinum inched down to $1717.70 from the day's opening at $1718.50, palladium steadied around $760.00 and silver soared to $30.20, the highest level in 30 years, from $30.05, as of 09:05 GMT.
Moreover, the Australian Central Bank left interest rate unchanged at 4.75% in December, while China is expected to raise interest rate to contain the skyrocketing inflation which climbed to 4.4% in October.
Gold has gained nearly 30% this year as a safe haven amid financial crisis in Europe and as an inflation hedge after the trillions spent by governments and central banks worldwide to boost their economies.