Hedging against inflation drive gold higher
The precious metal continues to capture investor's attention as inflation mounts globally. Prices in china accelerated last month and growth jumped beyond 9.0 percent, pushing PBoC to join India, Indonesia, Thailand and South Korea in boosting interest rates, in effort to limit the inflation bubble.
Gold for immediate delivery traded near the opening levels of 1,363.38, as its testing the support at 1,362.60. Gold reached a high of 1,365.53 and a low of 1,361.50. Future contracts rose by 0.08 percent as it added $1.100 to trade at $1,365.200 an ounce.
Major Market Movers
Inflation rates in China has accelerated to the fastest pace in more than two years, accordingly, China's central bank decided to increase overnight cash target for a third time since mid-October 2010 in an effort to curb rising inflation risk during this year.
The People Bank of China increased interest rates by 25 basis points to 6.06% during the month, from 5.81% in December, while the one-year deposit rate were set at 3 percent from 2.75 percent.
Tomorrow's BoE rate decision will cast its shadow on markets, where investors look upon the decision of the bank in order to extract the bank's outlook on inflation in UK, nonetheless, the bank is highly projected to preserve interest at 0.50 percent and the APF program at £200.0 billion.
Manufacturing and industrial data from UK will also influence trading ahead of US jobless claims report that should support the previously announced drop in unemployment in the U.S. where it reached in January 9.0 percent from the previous 9.4 percent.
The S&P GSCI index closed at 648.21 yesterday after gaining 2.35% in trading from the opening levels of 647.86. The Reuters Jefferies CRB index fell 0.21% to close trading 337.25, compared with the opening levels of 335.54.
Gold Fixes & Dollar's Movement:
Talking about metal Fixes (Feb 8), Gold fixes at AM Fix was set at $1,354.00 an ounce, and by the PM fixing at $1,363.50 an ounce, meanwhile silver fixing was set at $29.42000 an ounce and Platinum AM Fixing was set at $1,853.00 an ounce, and at 1,848.00 an ounce during the PM fixing, finally the Palladium AM fixing was set at $828.00 at the AM fixing while being set by PM fixing at $823.00 an ounce.
The US dollar index, which tracks the performance of the dollar against six-majors, traded at 77.96, compared with the opening levels of 77.95, while setting a high of 77.99 and a low of 77.84.
Silver for immediate delivery traded lower at $30.26 an ounce, compared with the opening levels of $30.31 an ounce, while setting a high of $30.33 an ounce and a low of $30.06 an ounce. Silver future contracts traded lower by 0.27% or 0.081 to trade at 30.190 an ounce
Platinum for immediate delivery traded higher by $15.50, at $1,862.50 an ounce, Palladium dropped by $1.00 to trade at $832.50 an ounce.