Metals start the week with recovery amid shaky confidence
Commodities started the week with upside momentum to cover from the heavy sell-off last week after Silver ended with the worst week since 1975 with the record slump of Thursday. Gold extended the rise for the second day after the recovery started on Friday.
Gold and Silver are trading bullishly with the start of the week, where gold is hovering above $1,500 recording the high of $1505.21 rising from the low of $1489.95 higher by almost 0.6% as of 03:11 EST. Silver on the other hand is hovering around $36.19 recording the high of $36.30 and the low of $35.24 an ounce.
The market was supported by unwinding of some jitters in Asia today as they acted positively on the US jobs figures that showed the quickening pace of hiring and suspended some of the fears that were dominant over the past week over the course of the recovery.
A correction was highly anticipated after the worst sell-off last week since 2008 that sent commodities tumble, especially silver and oil.
Oil's rebound on the eased economic jitters and intensified geopolitical pressures with the fighting in Libya. Crude is hovering around $99.22 a barrel today rebounding from the low of $97.41 a barrel.
The dollar also moved lower this morning as the market started the correction. The dollar index that gauges greenback's performance moved to the downside from the high of 74.81 to the low of 74.44 and now hovering around those areas.
Gold found support from the easing selloff, the weakening dollar, rising crude, and debt woes and tension once again. Though the EU finance ministered said they initially agreed on more support for Greece, the market is still jittery over the debt crisis despite easing general jitters and rising euro, which means more uncertainty and higher demand for gold!
The overall support for the market and for gold remains bullish, yet the correction might not have ended there and the bearishness might continue still this week.