Gold advances on growth outlook extending its gains
Gold inclined today extending the gains recorded during the past sessions, where it is affected by the negative outlook regarding the global pace of growth, which increased the appeal for the metal as a safe haven, and rising inflation concerned investors, which made the metal more attractive to be demanded as a hedge against inflation.
Gold rose slightly today after the opening of $1544.02 per ounce, recording the high of $1546.92 and the low of $1540.40 and is currently trading around $1544.12 per ounce.
The global pace of growth was expected to improve during the second half of the current year, but the U.S. downbeat Non-Farm Payrolls unexpectedly showed the lowest number of jobs added in June since nine months, which led fears and jitters to dominate the market, driving investors to demand the shiny metal as a safe haven.
On the other hand, gold is gaining on the appeal as a hedge against inflation, where major central banks around the world had announced that inflation exceeded the targets, including the European Central Bank, the Bank of England and People's Bank of China, this drove the ECB to increase rates by 25 basis points in order to apply it's main objective, which is containing inflation and providing price stability in the zone.
In Europe, all eyes are focused on the European debt crisis, where the European finance ministers will meet in Brussels today to discuss the new bailout package for Greece, after the finance chiefs approved during the past week to hand Greece the 12 billion euros tranche of the last year's aid package trying to help the nation to avoid default, after the parliament gave a vote of confidence on the austerity measures and a second vote on applying them.
Among other precious metals, silver declined today cutting the gains achieved in the past week. The metal opened the session today at $36.63 per ounce, recording the high of $36.70 and the low of $36.38 and is currently trading around $36.41 per ounce.
Platinum also declined today after the opening of $1750.00 per ounce to currently trade around $1739.00, the metal recorded the high of $1750.00 and the low of $1734.00 per ounce.