Gold retreats as the strengthening dollar and liquidations pressure the haven
Gold declined today after the opening in the Asian session cutting the gains recorded in the past six sessions, affected by the strengthening dollar, which is pulling the demand as a safe haven among the uncertainty dominating the market regarding the slowing pace of growth in major economies and the deepening debt crisis.
Gold declined today after the opening of $1553.37 per ounce, recording the high of $1555.41 and the low of $1547.37 and is currently trading around $1549.97 per ounce.
The dollar inclined today extending the gains recorded in the past two sessions, affected by the weakening common currency, the euro, and gained on demand as a safe haven, forcing negative pressures on the dollar-denominated commodities to trade lower.
The shiny metal was also affected by the dollar, which pushed it to become an alternative haven for investors while the dollar gained sharply on the appeal as a haven. Uncertainty is dominating the markets and related indicators are reporting slowing growth worldwide, which spread fears in the market and kept investors away from speculation, which affected the silver too.
The worsening debt crisis in Europe is also a major downside pressure on the market and driving the selloff today across the board which as well pressured the metal on liquidations to cover the losses that are extending further with the start of the European session and sharp opening drop for European shares.
Today, the dollar extended a two-day of gains, after the opening of 75.99 to record the high of 76.61 and the low of 75.88 and is currently trading near the intraday high around 76.56.
The Greek debt crisis wasn't any better after yesterday's meeting of the euro finance ministers, where they consider providing Greece with cheaper loans, longer maturity and more flexible terms, but this has failed to ease the jitters and woes in the market, yet deepened the fears especially after the heavy losses seen across the board, adding more volatility to the market, awaiting the final results of Brussels two-day meeting.
Among other precious metals, silver also slumped today, extending the losses recorded yesterday, after the dollar has forced pressures on commodities to trade lower in addition to the metals, especially with the fears and jitters in the market and after the huge losses seen across sessions.
Silver opened the trading today at $35.77 per ounce, recording the high of $36.04 and the low of $35.15 and is currently trading around $35.20 per ounce.
Platinum also fell today after the opening of $1738.00 per ounce, recording the high of $1738.00 and the low of $1728.00 and is currently trading around $1730.00 per ounce.