Gold extends the gains ahead for Jackson Hole annual meeting
Gold advanced today in Asia extending the gains recorded in the past session, where the shiny metal recovered the losses recorded yesterday during the Asian and European session, to close in New York with gains after the downbeat jobs figures supported demand for gold as a safe haven, while investors' slight wave of optimism retreated.
Gold inclined today after opening at $1773.96 per ounce, recording the highest at $1791.80 and the lowest at $1765.41, and is currently hovering around $1787.95 per ounce.
Pessimism and fears returned to control the markets, after the slight wave of optimism seen in the past three days, as some upbeat fundamentals supported the sentiment in the market in addition to the rally seen in equities, however, the positivity seen came to an end as the downbeat jobs report from the world's largest economy affected the slight confidence in the market yesterday, and supported the yellow metal to stop the downside correctional movement and returned to the general upside trend.
Moreover, growth figures from U.K and the U.S are expected today, where the pace of growth in the U.K could be unchanged and expected unrevised during the second quarter as rising inflation pressured households income, in addition, the worsening debt crisis in Europe along with the downbeat global growth outlook, which supported the slowdown in U.K and in the world as a whole, as the slowing pace of recovery in major economies supported the shiny metal to set all-time records amid rising recession-concerns.
The world's largest economy pace of growth is expected to slow further in the second quarter, reflecting the worsening economy, in spite of the several attempts from the feds to stimulus growth and support consumer confidence.
Today, central bankers from across the globe are to meet in Jackson Hole, for an annual meeting, where all eyes are focused on the fed's chairman, Ben S. Bernanke who could announce further monetary policy easing or a third round of quantitative easing in order to support the economy in the U.S. and to improve the fragile confidence, however, no hints from the chairman could disappoint investors and may sharpen the pessimism and increase the volatility, which are dominant in the market, raising the appeal for the yellow metal as a safe haven.
Among other precious metal, silver retreated today after the opening of the Asian session, cutting some of the gains recorded yesterday. The metal is currently trading at $40.72 an ounce, after recording a high of $41.13 and a low of $40.22. Silver opened the session today at $40.70 an ounce.
However, Platinum is still the most expensive precious metal, where after the decline seen during the past period and trading lower than the yellow metal, platinum advanced today and gold retreated from the all-time record to currently be less expensive than platinum. The metal opened the session today at $1812.00 per ounce, and then recorded a high of $1827.00 and a low of $1800.00, and is currently trading around 1823.00.