Gold may extend losses, as the dollar strengthens
Gold fluctuated today in the Asian session, with the possibility to extend the huge losses incurred in the past two sessions, where gold dropped on a stronger dollar and slightly eased jitters regarding the Greek debt crisis.
Gold opened today's session at $1499.90 per ounce, and is trending bearishly now around $1493.17 per ounce after recording the high of $1505.30 and the low of $1493.12 per ounce.
The greenback is affecting the shiny metal, where the low yielding currency is demanded as a safe haven over gold after the commodity selloff last week weakened the appeal of the metal which is trending lower on the mixed outlook for growth and the debt crisis.
The dollar inclined today, extending the gains achieved in the past sessions after the Feds left rates steady and refrained from signaling new rounds of quantitative easing. Bernanke also said the recovery is slowing, which pushed the dollar to incline reaching the peak in a week as fears over the outlook mounted. The Feds downgraded their growth expectations, yet Bernanke said that the growth will be strong in the second half of the current year.
The dollar is currently trading around 75.83 after the opening of 75.54, during the session; it recorded the high of 75.98 and the low of 75.53.
Today in Greece, the Greek lawmakers are to start the three-day debate to vote on the austerity measures required by lenders in order to acquire a new aid package and the tranche of loans for July. In addition, the European finance ministers are to meet on July 3 to decide on handing Greece a new aid package, and at the time, the Greek Prime Minister is pushing through budget cuts this week in order to meet the conditions required, which will qualify his nation to get the aid package, and also to convince the European leaders to hand the pending 12 billion Euros tranche of last year's bailout. Moreover, the European leaders pledged to help Greece avert default in case it cooperates, which has eased jitters regarding the debt crisis yet the volatility remains evident as the market awaits the final vote from the parliament.
Silver also declined today after the opening of $34.21 per ounce, it recorded the high of $34.30 and the low of $33.52 and is currently trading around $33.69 per ounce.
Platinum slumped too recording the low of $1679.00 per ounce after achieving the high of $1700.00; it is currently trading around $1688.00 per ounce.