Gold retreats after Bernanke's comments in Jackson Hole
Gold declined today after the opening in the Asian session, cutting some of the gains recorded in the past session, after the Federal Reserve chairman, Ben S. Bernanke said that growth will improve in the second half, despite the downbeat gross domestic product figures that showed slowing pace of growth in the world's largest economy, recording the slowest pace since mid 2009. Tension and fears eased in the market, forcing some downside pressures on the shiny metal to trade lower today as demand for safe havens slumped amid the slight wave of optimism.
Gold retreated today after the opening at $1836.45 per ounce, covering the opening gap seen, where the yellow metal closed on Friday at $1821.20. The metal is currently hovering around $1819.55 per ounce, after recording the highest at $1838.10 and the lowest at $1805.80 an ounce.
Moreover, this slight wave of optimism seen in the market supported the yellow metal to decline; we can see most Asian equities extended the gains today, while European shares start also in the green, the downbeat global growth outlook eased after Bernanke was optimistic in regards to the pace of recovery, which is expected to quicken during the coming period, in addition, the Chairman gave no hints regarding another round of quantitative easing or further monetary policy easing, however he said that lawmakers have the appropriate tools and will be used to aid the pace of recovery if needed.
Today, the metal is expected to trade within narrow levels till the U.S. session, awaiting heavy fundamental form the world's largest economy, where improvement is expected in the spending levels along with the personal income, which could confirm Bernanke's positive expectations and optimism, and would pressure the yellow metal further to the downside. However, downbeat figures below expectations should support gold to recover the earlier losses and record gains.
Gold movement could be limited within narrow levels during the European session today, as the lack of fundamentals along with U.K. banks' holiday should affect the metal, where low volume is seen as less than usual investors are trading the yellow metal.
Among other precious metals, silver declined today after the opening of the Asian session at $41.53 an ounce, also filling the opening gap seen, where the metal closed Friday's session at $41.20 per ounce. The metal reached a high of $41.72 and a low of $40.87, and is currently trading around $41.18 per ounce.
However, platinum advanced today after the opening of $1823.00 per ounce, recording a high of $1832.00 and a low of $1810.00, and is currently hovering around the intraday high.