The shiny metal climbs to record as growth outlook boosted demand for haven
Gold advanced today after the opening in the Asian session, extending the gains recorded in the past sessions, setting new historical record at $1894.80 per ounce, while the metal is mainly affected by the downbeat growth outlook, supported by the weakening dollar and the European debt crisis, where investors tend to hold more gold on rising recession concerns, while the lack of fundamentals today led traders to demand precious metals, as we can see silver also reached a three-month record, while platinum surged to a three-year peak.
As expected, the shiny metal continues the upside journey, setting a new historic peak close to the level of $1900 an ounce and is still expected to breach the level of $2,000, where after the opening in the Asian session today at $1856.45 an ounce, gold advanced to the set new all-time record. The metal didn't fell below the opening level, and is currently trading around $1888.45 per ounce.
The weakening dollar has supported demand for the yellow metal and also supported other commodities and metals to trade higher, as pressures eased a bit, while the low yield currency lost its appeal as a haven in the currency markets and led investors to hold precious metals instead.
Moreover, the European debt crisis seems to be deepening, where the German Chancellor, Angela Merkel, refused the joint euro bonds proposal, and called it as the wrong solution for the crisis in an interview with ZDF TV. In addition, Merkel said that every country within the zone should handle its own debt, or the European Union as whole will be in debt, where countries should start applying austerity measures in order to reduce the deficit and control the debt.
Today, we expect low volume as lack of fundamentals should affect the markets, awaiting the heavy fundamentals to be released tomorrow, as the purchasing managers index is expected to show slowing pace of growth in the manufacturing and services sectors in the euro zone, which could confirm the downbeat growth outlook in the zone, affected by the unsolved debt crisis.
Among other precious metals, silver also advanced after the opening gap seen today, where the metal opened in the Asian session at $43.38 an ounce, however closed in New York Friday's session at $42.78 per ounce. The metal recorded the high of $43.91 and the low of $42.60, and is currently hovering around $43.76, after setting a three-month record.
Platinum is trading around three-year record set today at $1881.00 an ounce, where after the opening today at $1865.00, the metal inclined to set an intraday high at $1881.00 after setting the low of $1863.00 per ounce.