Gold may extend the gains on prevailing jitters

Gold is trading within narrow levels since the early Asian session opening, but may extend the gains achieved in the past sessions amid the deepening European debt crisis, weakening dollar and finally downbeat growth outlook.

Gold is trading near the high record of $1576.68 per ounce recorded on May 2, after the opening of $1567.50, recording the high of $1569.25 and the low of $1564.17, and is currently trading around $1568.30 per ounce.

Fears and jitters are dominating the market regarding the European debt crisis, which is expanding and deepening, adding more pressures and leading the sell-off move seen in the market after the heavy losses seen across the board, which could support the metal as uncertainty and jitters are controlling the market, to be demanded as a safe haven especially after the dollar weakened earlier today.

Moreover, yesterday Moody's downgraded Ireland credit rating to junk to Ba1 from Baa3 due to the weakening Irish economy, which presented the country as a non-investment one, to be the third country in the Euro zone to suffer from a credit rating downgrade, after Moody's has downgraded Portugal's credit rating on July 5, and Greece before.

The dollar weakened earlier today after three days of appreciation easing the negative pressures forced on commodities and metals to trade bearishly, where gold usually acts as an alternative safe haven as the dollar is strengthening.

The dollar is currently trading around 75.80 after the opening of 76.01, recording the high of 76.08 and the low of 75.79.

Gold also gained on the downbeat growth outlook, where the global economic recovery is believed to have eased after pessimism dominated the market on the sluggish data released in the euro zone and the world's largest economy, the United States.

Silver also rose today, after the eased pressures forced by the strengthening dollar, which always push the dollar-denominated commodities to trade lower as the low yielding currency appreciates.

Silver is currently trading around the intraday high of $36.52 per ounce after the opening of $36.07 and the low of $35.96 per ounce.

Platinum also inclined today after the opening of $1725.00 per ounce, recording the high of $1743.00 and the low of $1724.00, and is currently trading around $1738.00 per ounce.