Gold rose for the second consecutive day

The precious metal rose for the second time this week, breaching a pivotal support at 1,349.40 as demand for haven intensified due to European debt concerns and the continuous tension in Egypt. The dollar dropped as well against majors to support the metal's rise.

Gold for immediate delivery traded higher than the opening levels of 1,350.92 an ounce where it's currently trading at 1,355.23. The metal reached the highest at 1,357.46 an ounce and the lowest at 1,349.10 an ounce. Gold Futures rose by 0.63 percent or $8.500 to trade at $1,356.700 an ounce

Major Market Movers

The precious metal breached the support at 1,349.40 an ounce allowing more downside movement that could send the metal to trade near 1,361.90.

This week's BoE rate decision and inflation data from around the world will influence trading in metals as gold is considered the best hedge against inflation, accordingly, if inflation spike around the world, the metal could witness further bullishness over the upcoming period.

The S&P GSCI index closed at 645.86 yesterday after dropping 2.27% in trading from the opening levels of 650.52. The Reuters Jefferies CRB index fell 1.46% to close trading 337.46, compared with the opening levels of 339.94.

Gold Fixes & Dollar's Movement:

Talking about metal Fixes (Feb 7), Gold fixes at AM Fix was set at $1,347.00 an ounce, and by the PM fixing at $1,347.50 an ounce, meanwhile silver fixing was set at $29.21000 an ounce and Platinum AM Fixing was set at $1,842.00 an ounce, and at 1,845.00 an ounce during the PM fixing, finally the Palladium AM fixing was set at $818.00 at the AM fixing while being set by PM fixing at $820.00 an ounce.

The US dollar index, which tracks the performance of the dollar against six-majors, traded at 77.76, compared with the opening levels of 77.91, while setting a high of 78.10 and a low of 77.75.

Other Metals

Silver for immediate delivery traded higher at $29.64 an ounce, compared with the opening levels of $29.37 an ounce, while setting a high of $29.73 an ounce and a low of $29.32 an ounce. Silver future contracts traded higher by 1.08% or 0.317 to trade at 29.660 an ounce

Platinum for immediate delivery traded higher by $13.50, at $1,849.00 an ounce, Palladium dropped by $8.50 to trade at $822.50 an ounce.