Gold could extend the gains on haven demand
Today, gold inclined extending the gains achieved before, affected by rising demand on the shiny metal as a safe haven, where concerns are dominating the market and fears are controlling investors regarding the current situation in Europe, precisely Greece, where the default possibility increased after the European finance ministers decided to delay the 12 billion euro tranche until austerity measures and requirements provided by the EU are applied in Greece, while the Greek Prime Minister, George Papandreou, appointed a new finance minister in order to apply these measures, in light of the awaited confidence vote from the Greek parliament later today.
Gold started the Asian session today at $1540.45 per ounce, and then rose to the high of $1543.99 and declined to the low of $1537.75 per ounce, and is currently trading around $1543.70 per ounce.
Gold is demanded as a safe haven in the times of uncertainty, looking forward to the result of the awaited confidence vote from the Greek parliament later today, where the decision will give signal whether Greece will manage to contain its political chaos and move forward in applying the austerity measures needed, as a no confidence vote raises the huge systematic risk threatening the global economy and the pace of growth worldwide as the nation will be one step closer to default!
Gold is currently continuing its bullish trend, after it a slight correction amid the dollar's appreciation, where the dollar declined in the past two days directing investors to demand Gold instead of the low yield currency. Today the market will be volatile waiting for the heavy data to be released in the Euro zone, including the public finances and the public net borrow from U.K and the ZEW survey from Germany, and finally the most important data, the parliament decision in Greece.
Silver is trading among narrow levels, where investors are cautious and speculators are concerned toward the ongoing economic situation which added volatility to the market, forcing pressure on the metal.
Silver is currently trading around $36.11 per ounce, after the opening of $36.03 per ounce; it recorded during the day the high of $36.22 and the low of $35.66 per ounce.
Platinum declined to trade at the moment around $1732.00 per ounce, after the opening of $1734.00, and recorded the high of $1734.00 and the low of $1728.00 per ounce.