Gold consolidates after Papandreou wins a vote of confidence
Today, gold is trading within narrow levels since the opening in Asia, where the positive news from Greece spread hopes in the market, easing the jitters and reducing concerns regarding the situation facing Greece, after the Greek prime minister won a vote of confidence in the parliament.
Gold is currently trading around $1545.80 per ounce, after the opening of $1546.10; while so far recorded the high of $1547.85 and the low of $1544.80 per ounce.
Some part of the uncertainty dominating the market has been relieved regarding the European debt crisis, after Greek Prime Minister, George Papandreou, won a vote of confidence in the parliament, supported by his 155 party members, on the new cabinet which was reshuffled late last week, which forced some pressures on Gold to be less demanded as a safe haven, where the degree of uncertainty declined on the news.
Papandreou has won a vote of confidence indeed, but this was the easy part and was already expected by the majority. The Prime Minister should win another vote of confidence on the austerity measures and his 5-years fiscal plan to be applied. The 78 billion euros austerity measures are required by international lenders in order to qualify Greece to deserve a new bailout package in addition to the pending 12 billion euro July tranche of last year's bailout.
Fears eased slightly, after the positive news from Greece which eased jitters regarding the default. This affected gold due to the eased demand on the shiny metal, where it was demanded as a safe haven, stopping gold from extending the gains achieved in the past three days.
Currently, volatility can be seen in the market, with expectations for the euro to incline, knowing that it slightly declined after winning the vote of confidence because the news was already expected and priced in the market.
Today, heavy data will be released, starting with the Bank of England Minutes, where the split on the vote might have eased with the absence of arch hawk Sentance, and accordingly might ease the bets on tightening by the BoE.
Nevertheless, the more important event is the Federal Open Market Committee's rate decision and Bernanke's speech. The focus will be on the speech as rates are expected steady, yet Bernanke might refrain from clear indications for a third round of quantitative easing, which adds more upside support for gold.
Silver inclined today, mainly on the good news from Greece, where silver is considered the main speculative metal and acquired good support from rising Asian equities this morning.
Silver is currently trading around $36.36 per ounce, after the opening of $36.31 per ounce, during the session silver achieved the high of $36.54 and recorded the low of $36.21 per ounce.
Platinum is trading around $1754.00 per ounce after the opening of $1746.00, where it achieved the peak at $1754.00 and the low at $1742.00 per ounce.