Safe haven demand eases as stocks improve
Gold is fluctuating heavily since the opening in the Asian session, but is biased to the downside, and could extend the losses recorded in the past two sessions as pessimism eases in the markets and investors tend to hold less gold than before.
Spot gold declined after setting new historical record at $1814.85 per ounce, and as we can see the yellow metal has stopped the upside journey, which lasted for six weeks to currently trade around $1740.90, after the opening in the Asian session at $1743.70 per ounce. The metal recorded a high of $1746.75 and the low of $1727.82 per ounce.
Japan, the world's second largest economy, released the gross domestic product index, which unexpectedly showed that the economy contracted by 0.3%, which is better than the prior contraction of 0.9% and the expected of 0.6%, in addition, the annual gross domestic product contracted by 1.3% less than the revised prior of 3.6% from 3.5% and better than the expected drop of 2.5%.
Moreover, the world's largest economy showed some improvement in regards to the retail sales index and initial jobless claims figures last week, where this improvement in addition to the Japanese upbeat data supported the stocks markets to advance worldwide, as we can see all of them are trading in green, affecting the shiny metal to trade lower, after the wave of pessimism eased a bit, supporting investors to sell their positions on gold and to invest in the stock markets especially after margins for gold futures rose.
On the other hand, silver surged today after the opening in the Asian session, extending the gains recorded in the past session, where after the wave of pessimism eased a bit and stocks jumped widely, investors tend to hold riskier investment.
The metal opened the session today at $39.00 per ounce, and recorded the high of $39.22 and the low of $38.68, and is currently trading around $39.14 per ounce.
Platinum is trading within narrow levels since the opening today, after the gains seen in the past week, where platinum overbeat the shiny metal again and is trading now higher at $1800.00 per ounce. The metal opened the session at $1801.00 an ounce and recorded the high of $1806.00 and the low of $1796.00.