Record fund holdings surge, Gold climb further
Gold traded higher, extending two-day gains due to mounting concerns about Europe's debt problem that forced exchange-traded product holding for the metal to surge to a record in Asia, accordingly, pushing the euro higher and the dollar lower.
The inverse relationship between commodities and the dollar comes into play, where the Dollar depreciated against six-major currencies on the US dollar index, where it's currently trading at 80.25, compared with the opening levels of 80.37.
On a daily scale, gold for immediate delivery rose to trade at 1,386.78 an ounce, compared with the opening levels of 1,385.07 an ounce. Gold set a high of 1,389.72 and a low of 1,383.55.
Due to the inverse relationship between the metal and the greenback, gold gained nearly 26 percent this year. Gold futures rose by 0.19 percent or $2.60 to trade at 1,388.700 an ounce.
Major Market Movers
Today's economic calendar lacks major fundamentals that will affect trading, but investors look upon the British economy and the U.S. as both will release growth figures this week, along with the BOE Minutes report that will paint a clearer picture for investors regarding the upcoming period's conditions.
Silver sales are forecasted to rise in the upcoming period, as investors seek protection from inflation and wealth from the volatility they face in FX-exchange markets.
Silver for immediate delivery dipped on the daily scale to trade at 29.30 an ounce, touching a high of 29.41 an ounce and a low of 29.20, compared with the opening levels of 29.35.
Platinum for immediate delivery rose by $7.0 to trade at $1,713.00 an ounce, Palladium rose by $8.0 to trade at $746.00 an ounce.
Technical Analysis for Gold
gold is still achieving the retesting process for the previous broken uptrend line, while meeting the initial resistance of 1390.00-1395.00. Hence, we maywitness possible bearishness.