Gold trim losses and ascends
Gold rebounded from a sharp drop in the previous two-trading sessions as a sell off by investors to take advantage of the metal's elevated prices caused it to fall from record.
Bullion for immediate delivery rose to 1,459.10 an ounce, compared with the opening levels of 1,452.79. Futures gained 0.43% to trade at $1,459.900 an ounce.
Investor's desires to hedge against inflation forced the metal to set new record at $1,476.30 an ounce, where fears of inflation intensified after China hiked rates for the third time this year, while price acceleration in Europe was noted during the past period to surpass the desired rate set by central banks in the continent.
The ECB hiked rats last week by 25 basis points, taking the interest up from the record low of 1.0% to 1.25 percent. BoE left the key lending rate unchanged during April despite that inflation rose in March by 4.4 percent from the previous 4.0 percent reported a month earlier.
Inflation expectations have been rising in China even as the central bank hiked rates. The Chinese economy has been growing at a 20% rate over the past period, and much of that is tied to inflation that has entered a crisis territory where inflation currently stand at double-digits for many products and services in the country.
Investors believe that China's central bank will need to hike rate by at least 3.0 percent to curb inflation.
The US dollar index, which tracks the performance of the currency against six-majors, traded at 74.77, compared with the opening levels of 74.87 while setting a high of 74.99 and a low of 74.75. Gold usually moves inversely with the dollar as commodities are a dollar weighted index.
Technically speaking, gold's trend remains to the upside as far as the support at $1,390.00 an ounce remains intact and the dollar continues to weaken, while the 100-day MA support level is set at 1,374.00 an ounce.
Gold's trading remains above the support at 1,445.00 an ounce, where if breached it will pave the way for the pair to test the support at %1,425.00 an ounce, but the general trend remain to the upside with initial targets set at 1,480.00 an ounce and probably achieve new historic highs above those levels.
The S&P GSCI index closed trading at 730.63; falling by 19.64 points, while the RJ/CRB commodity index closed at 359.05, after dropping 6.95 points.
Major Metal Fixing
As for metal Fixes (Apr 12); Gold fixed at AM Fix was set at $1,461.25 an ounce while the PM fixing (Apr 12) was set at $1,450.50 an ounce; meanwhile silver fixing was set at $40.44000 an ounce and Platinum AM Fixing (Apr 12) was set at $1,790.00 an ounce, and at 1,785.00 an ounce during the PM fixing (Apr 12); finally ending with Palladium AM fixing set at $785.00 at (Apr 12) AM fixing, while the PM fixing (Apr 12) was set at $783.00 an ounce.
Silver for immediate delivery traded at $40.44 an ounce compared with the opening levels of $40.084 an ounce, while setting a high of $40.53 an ounce and a low of $39.99 an ounce. Silver future contracts traded higher by 1.05% or 0.419 to trade at 40.485 an ounce
Platinum for immediate delivery traded higher by $15.0, at $1,778.000 an ounce, while Palladium rose by $13.0 to trade at $765.00 an ounce.