Narrow trading for gold today
Gold is trading within narrow levels since the start of the Asian session, where it is mainly affected by the dollar, which declined on Monday and seems to be rebounding this morning. In addition, the Greek debt crisis and the sluggish data from the United States yesterday are still affecting the market yet offset by some optimism on Greece that is supporting equity markets.
Gold slightly declined to currently trade around $1497.10 per ounce after the opening of $1497.70; during the session, it recorded the high of $1501.05 and the low of $1496.40 per ounce.
Uncertainty is currently dominating the market, where all eyes are focused on the Greek parliament to vote on the 5-year austerity measures which is expected sometime tomorrow, the debate started yesterday and the results are expected to be released later on Wednesday or Thursday.
The market will keep on fluctuating and remains mixed until the vote results are released from the Greek parliament, where if the parliament approved to pass the measures, a positive wave will be seen in the market easing the jitters and spreading relief, which may ease the forces pressuring commodities lower.
Signs of relief are also seen in the market over the prospects for the second bailout for Greece, which might indeed avoid default as banks agree on the voluntary rollover of debt. This sentiment is somehow easing the vote jitters and also pressuring gold lower which remains below the psychological $1,500 areas.
Yesterday, the U.S. income report showed that the pace of growth slowed in May, which forced some pressures on the dollar to decline, after the downbeat data, and also pressured gold with the slow pace of inflation gains. Nevertheless, the dollar rebounded today as the slowing pace of growth is already expected, where the feds downgraded the growth expectations for the current year.
The low yielding currency plays a key role affecting gold, where the rising greenback pushed the shiny metal from a primary investment demanded through hardships to a secondary investment making the metal an alternative choice.
The USDIX is currently trading around 75.36 after the opening of 75.30; the index recorded the high of 75.41 and the low of 75.15.
Among the precious metals, silver inclined today after the opening of $33.54 per ounce, to record the high of $33.81 and the low of $33.51 and is currently trading around $33.71 per ounce.
Platinum also inclined today after the opening of $1678.00 per ounce to achieve the high of $1685.00 and declined to record the low of $1674.00 and is currently trading near the intraday high around $1685.00 per ounce.