Gold slashes some of the losses acquired yesterday
Gold trimmed losses and gained on the daily scale as Libya's unrest returned to haunt markets. Dollar gained, failing to disrupt though limiting the rise witnessed in commodities.
Bullion for immediate delivery rose in trading to $1,415.48 an ounce compared with the opening levels of $1,411.60 an ounce, while setting a high of $1,417.42 an ounce and a low of $1,410.10 an ounce. Futures gained 0.18% to trade at $1,415.100 an ounce.
Gold followed the drop of oil as concerns from Libya violence and inflation eased. Crude retreated from 29-month high, while gold returned to trade near the pivot level of 1,410.00 an ounce.
Moody's Investors Services downgraded Greece credit rating by 3-notches and Spain by one this week, spurring demand for low yielding assets, especially the dollar. The dollar rose against the euro that suffered from Spain's downgrade, sending the US dollar index, which tracks the performance of the currency against six-majors, to ascend and trade at 77.145, compared with the opening levels of 77.129, where it managed to set the highest at 77.335 and the lowest at 77.104.
Currency fluctuation and inflation concerns drove the precious metal to gain more than 30 percent in 2010, while pushing the metal to record an all time record at $1,444.75 on March 3, 2011.
Bank of Korea's hiked rates yesterday to 3.0 percent, while New Zealand Central Bank slashed rates to the lowest level on record to 2.5 percent, meanwhile the BoE sustained the lowest rate on record at 0.50 percent. This is compared with statement's by ECB officials that board members may consider raising rates as soon as April in effort to tackle elevated inflation levels in the 17-nation economy.
The Euro lost grounds against the dollar, which sent the single currency to appreciate further against a basket of currencies, but analysts predict that the Fed will keep its rates near record low at 0.0%-0.25%, which would send the dollar to depreciate further, accordingly, providing another supporter for gold to ascend due to the inverse relationship between commodities and the dollar as they are a dollar weighted investment tools.
The S&P GSCI index closed trading at 707.19, lower by 8.77 percent, while the RJ/CRB commodity index closed at 354.45, after dropping 5.78 percent.
Technically speaking, the metal's trend remains to the upside as far as the support at $1,390.00 an ounce remains intact, while the 100-day MA support level is set at 1,374.00 an ounce.
Gold's trading remains above the support at 1,400.00 an ounce, where if breached it will pave the way for the pair to test the support at %1,390.00 an ounce, but the general trend remain to the upside with initial targets set at 1,425.00 an ounce and probably return to trade near the achieved record around $1,445.00 an ounce.
Major Metal Fixing
As for metal Fixes (Mar 10); Gold fixed at AM Fix was set at $1,424.25 an ounce while the PM fixing (MAR 9) was set at $1,431.00 an ounce; meanwhile silver fixing was set at $35.19000 an ounce and Platinum AM Fixing (Mar 10) was set at $1,790.00 an ounce, and at 1,778.00 an ounce during the PM fixing (Mar 10); finally ending with Palladium AM fixing set at $770.00 at (Mar 10) AM fixing, while the PM fixing (Mar 10) was set at $769.00 an ounce.
Silver for immediate delivery traded at $35.12 an ounce compared with the opening levels of $35.25 an ounce, while setting a high of $35.46 an ounce and a low of $35.02 an ounce. Silver future contracts traded higher by 0.45% or 0.159 to trade at 35.225 an ounce
Platinum for immediate delivery traded higher by $5.50, at $1,775.00 an ounce, while Palladium gained by $3.0 to trade at $768.50 an ounce.