Narrow trading for the shiny metal today
Gold declined slightly today after opening the Asian session at $1835.25, but is trading within narrow levels, after the huge gains recorded yesterday, where the metal was supported by the downbeat data from Europe, which reflected low confidence in the economy, in addition to the contracted consumer confidence in the U.S, which supported the yellow metal to trade higher yesterday, as investors held more gold as demand for safe havens surged.
Gold eased today after opening the session at $1835.25 per ounce, recording a high of $1837.20 and a low of $1823.73, and is currently hovering around $1831.00 per ounce.
As we noticed, the low yielding currency, the U.S. dollar, also gained big time in the past session, reflecting the rising concerns and fears in the market, where tension returns to control investors after the slight wave of optimism diminished and pessimism returned to be dominant in the market.
Today, the shiny metal returned to trade a bit lower, as Asian equities extended the gains recorded for the fifth consecutive day, reviving the slight optimism in the market and raising confidence today. Moreover, Italy managed to sell 3.75 billion euros of long-term maturity bonds, without any intervention from the European Central Bank, at lower yields, easing the rising debt-concerns in the euro zone. Investors are holding less gold today as we can see the metal is negatively biased.
The shiny metal could fluctuate heavily today, awaiting more critical fundamentals from Europe, where Germany released the retail sales index, which came unchanged and better than the expected drop, in addition, the German unemployment rate was also unrevised at 7.0%, awaiting the euro zone CPI estimate and unemployment rate.
Volatility and heavy fluctuations are expected today, as heavy fundamentals are to be released during the European and U.S. session, where eyes are focused on U.S. ADP employment change, which could reflect further slowing pace of recovery and could lead U.S. lawmakers to provide further monetary easing policies, as the FOMC Minutes yesterday included no hints for another round of quantitative easing, however law markers will use their appropriate tools to stimulate the economy if needed as Bernanke explained at Jackson Hole.
Among other precious metals, silver inclined slightly today extending the gains recorded in the past session, where after the opening of $41.27 per ounce, the metal retreated to a low of $41.17. Silver also reached a high of $41.56 and is currently hovering around $41.34 an ounce.
Platinum surged after opening the Asian session at $1845.00 per ounce and recorded the highest at $1858.00 and the lowest at $1840.00, and is currently trading around $1850.00 an ounce.