Narrow trading for precious metals
Precious metals are mixed and trading within narrow levels today, while investors are waiting for the European summit, which will start later today extending till tomorrow, with hopes regarding the current situation in Greece.
Gold declined a bit today, but still within tight levels, affected by uncertainty in the market regarding the debt-laden nation, where the European leaders are to meet today in hopes to hand Greece the needed July 12 billion Euros tranche.
In Greece, parliament members are to vote on the 5-years austerity measures on June 28, which is the toughest obstacle facing the euro zone, where those measures are required by lenders in order to qualify Greece for another bailout package helping the country not to default, which if occurred would hit the financial sector in the world in addition to threats regarding the global economy to fall back into recession. Winning a vote of confidence is still not enough for lenders, where they demanded Greece to take some serious steps into cutting spending and selling state assets, which is forcing more pressures on Greece to default.
Gold declined today after the opening of $1548.78 per ounce, recording the low of $1544.47 after achieving the high of $1549.07 and is currently trading around $1544.77 per ounce.
The dollar's appreciation extended today, after the heavy data released yesterday from the United States. Yesterday, the Federal Open Market Committee (FOMC) kept the rates unchanged in light of sluggish growth, which is slowing down temporarily. In addition Bernanke gave no signals for a further quantitative easing limiting the dollar's supply, pushing it higher. Bernanke also explained that no inflationary risk are threatening the economy, where he added that rising inflation was driven by higher energy and food prices, but it will stay under the fed's control and below their target.
Bernanke downgraded growth expectations to average 2.8% from the previous average for the year of 3.2% which increased risk aversion and jitters over the recovery supporting the dollar and likley to pressure the metal lower for the rest of the day.
The dollar inclined today after the opening of 74.86 to record the high of 75.16 and the low of 74.77 and is currently trading around 75.06.
Silver slightly declined today to be trading now around $36.21 after the opening of $36.28 per ounce, where during the session it recorded the high of $36.33 and the low of $36.06 per ounce.
Platinum opened the trading today at $1750.00 per ounce and recorded the high of $1756.00 and the low of $1741.00 per ounce and is trading now around $1741.00 per ounce.