Gold declines but still relatively high affected by rising debt-concerns
Gold is trading lower this morning, cutting some of the gains recorded in the past sessions, ending the long upside journey, affected by the relatively upbeat data from U.S., after the growth's negative outlook dominated the market regarding the world's largest economy, but the metal is still relatively high, trading near its peak.
Gold fell today after the opening of $1587.15 per ounce, recording the high of $1588.90 and the low of $1578.85, and is currently trading around $1581.05 per ounce.
Gold declined after yesterday's unexpected upbeat data from the U.S., where the data showed a slight improvement in the economy; in addition, the Feds showed that there is no need for another round of quantitative easing, which supported the dollar to rebound to the upside after the heavy losses recorded, forcing commodities and metals to trade lower today, spreading losses across the board.
The dollar inclined today after the opening of 75.20, to record the high of 75.41 and the low of 74.96, and is currently trading around 75.35.
However, Gold is still relatively high and trading near the historical top record set yesterday, reflecting rising debt-concerns and fears regarding the situation in Europe in addition to the possibility of cutting U.S. credit rating by Moody's and Standard & Poor's.
Moreover, in Europe the debt crisis is deepening, where the European finance chiefs came to no agreement regarding Greece, and the IMF chief, Legarde said during the week that the IMF is not ready to discuss a new bailout package for Greece, and the country should focus in the moment on implementing the austerity measures and may have to apply further measures.
Today, the European Banking Authority and ECB will release the results of testing 91 banks from 21 European countries that count for nearly 60% of Europe's banking assets. The stress test is expected to show advancement from the past year. Volatility and fluctuation will dominate the market today awaiting the results of the critical test.
Among other precious metals, silver also decline to cut some of the gains recorded in the past three sessions, after the dollar strengthened affecting metals and commodities to trade lower.
Silver is currently trading around $38.00 per ounce, after the opening of $38.29, recording the high of $38.61 and the low of $37.86 per ounce.