Gold is fluctuating, with probable gains supported by uncertainty in the markets
Today, gold is fluctuating within narrow levels as uncertainty is dominating the markets with the lack data to be released today, in addition to the banks holiday in Australia and three major European nations including Germany, France and Switzerland, where trading volume could be low today.
Gold is currently trading within narrow levels, after it opened the session at the level of $1530.00 per ounce. Gold recorded the high of $1532.60 and the low of $1526.90 and is currently trading around $1529.69 per ounce.
Raising interest rates in the Euro zone next month could support gold to the upside; concerns are controlling the markets regarding the debt crisis, whereas debt-laden economies such as Greece, Ireland and Portugal will suffer from higher interest rates, doubts are rising regarding the ability of those nations to repay their commitments, knowing that they are depending on bailout loans.
Today, Gold could be supported by the weakening dollar after it has been inclining for three straight days pressuring Gold lower, where uncertainty and concerns regarding the global recovery are forcing the dollar higher especially as investors unwind some of the bearishness on the dollar after Bernanke refrained from hints about the third round of quantitative easing. The dollar is now seen slightly lower correcting after the rally.
The euro is also declining due to the uncertainty dominating the markets and regarding Trichet aiming at higher rates in July, which could support gold to be demanded as a safe haven in the time the global economic growth is slowing down.
With the absence of Germany, France and Switzerland the trading volume in markets could be lower than usual, which will add fluctuations to the precious metals markets. The euro today started the day with a slight upside movement versus the dollar, in a correctional move following Friday's heavy losses. Still the focus remains on debt-laden Greece and news of the new bailout which will likely keep the euro pressured to the downside.
Silver declined today during early trading, after opening at $36.16 per ounce with dampened risk and speculation appetite in the markets because of the dominating uncertainty; it is currently trading around $35.92, and recorded the high of $36.28 and the low of $35.67 per ounce. Platinum is currently trading around the level of $1824.00 per ounce; it recorded the high of $1828.00 and declined to the low of $1819.00 per ounce after the opening of $1828.00.