Metals narrowly trading ahead of the European summit results
Gold rose slightly today but still trading within narrow levels ahead of the European Emergency summit, all eyes are focused on the euro zone, especially Greece, where a second bailout package is needed to ease the pressures and the jitters in the market, and to end the volatility and fluctuations. In addition, the weakening dollar has eased the negative pressures forced on commodities and metals, but still not enough for gold to widen the gains.
Gold slightly surged today after the opening of $1600.30 per ounce, recording the high of $1604.49 and the low of $1597.23, and is currently trading around 1603.85.
The dollar slumped today to reach the lowest in two weeks, extending the losses recorded in the past sessions. The low yielding currency lost the appeal to be demanded as a safe haven as Gold advanced big time setting new records throughout the past two weeks, but at the moment, the metal is fluctuating heavily and trading around the opening levels.
Eyes are on Europe, where we are awaiting the European leaders meeting in Brussels today, with hopes to come up with a solution regarding Greece and the sovereign debt crisis, which is affecting the zone negatively and raising concerns in regards to the financial stability in the area.
Late yesterday, the German Chancellor and the French president, Sarkozy came to a common position regarding the second aid package for Greece, and the European Central Bank's president, Trichet has welcomed their position as government sources said, but further information regarding the common position is still unknown and will be detailed in the summit today.
Gold is fluctuating heavily today, and choppy trading prevails where investors are weighing the mixed data and expectations for the summit. The market is moving on high levels of speculation, awaiting the results of the summit today, where approving on a second bailout package for Greece with the best terms to avoid selective default, will force negative pressures on gold to trade lower, however, a weak agreement or no agreement at all, could lead gold to achieve further records above $1600.00 levels.
The European leaders might agree on a second bailout package aiding Greece today, which could lead a wave of relief in the market due to the avoidance of a Greek default and averting the expansion of the debt crisis to other countries in the zone and that will be the trigger for gold to start the bearish correction.
Among other precious metals, silver fell after the opening of $40.00 per ounce, to record the high of $40.33 and the low of $39.48; the metal is currently trading around $39.65 per ounce.
Platinum, surged today after the opening of $1771.00 per ounce, to record the high of $1781.00 per ounce and the low of $1766.00.