Gold recovers the losses recorded yesterday amid slower growth fears
Gold surged today recovering the losses recorded in the past session, after the European Central Bank chief, Jean-Claude Trichet explained in a press conference that growth is progressing at a moderate pace, while inflationary threats are rising, but he also said that more liquidity will be pumped into the financial sectors, attempting to stimulate growth and ease markets tension. However, the shiny metal declined after investors led a wave of profit taking on gold after setting new historic record in order to compensate the huge losses seen across the board.
Yesterday, after the European central bank has kept interest rates unchanged, gold surged to set a new historical record at $1682.00 per ounce, while fears dominated the market that the pace of growth is slowing indeed and lost its upside momentum, but retreated after investors led a profit taking wave to recover some of the losses seen across the board, however, pessimism is still dominant in the market, while fears and jitters support the shiny metal to recover the losses seen yesterday.
Gold inclined today after the opening in the Asian session at $1646.85 per ounce, recording a high of $1663.90 and a low of $1641.65, and is currently hovering around $1662.25 per ounce.
The downbeat growth outlook has supported demand for gold as a safe haven, where investors are holding gold in the time confidence is lost in the market; in addition, the ECB alongside the Bank of England kept interest rates steady at 1.5% and 0.5% respectively, which confirmed the slowing pace of growth and revealed the attempts to stimulate growth in Europe, after the debt-crisis hurt the economy sharply in Europe and forced upside inflationary pressures and left the monetary committees to keep key rates as they are.
Moreover, Trichet announced yesterday special liquidity operation to ease the tension in European financial markets, yet this wasn't enough to spread a wave of relief in the market, In regards to Italy, Trichet said that The hampering of the Italian economy by impediments is absolutely obvious which extended the fears in the market the Italy could be the European debt-crisis next victim, which supported Gold to trade higher today amid the possibility of an Italian debt-crisis.
Volatility and heavy fluctuations are expected to dominate the market today, waiting for the critical non-farm payrolls from the world's largest economy, where an improvement in the index could spread some positivity in the market.
Observing silver among the precious metals, we can see that silver is recovering some of the huge losses recorded in the past session. The metal opened the session at $38.86 per ounce, and recorded the high of $39.82 and the low of $38.72, and is currently trading around $39.67 per ounce.
Platinum, declined sharply yesterday, and extended the decline today, where the metal is currently trading around $1703.00 per ounce, after recording the high of $1752.00 and the low of $1676.00 per ounce.