Gold trades within narrow levels, but negatively biased
Gold retreated today after opening the Asian session, extending the losses recorded yesterday, where after the weak fundamentals from Europe and U.S., we expected the shiny metal to close higher than the opening level in New York session, however, gold inclined slightly but was not able to cover the losses incurred during the Asian and European session.
Gold retreated today after opening the session at $1825.80 per ounce, recording a high of $1828.80 and a low of $1814.58, and is currently hovering around $1820.25 per ounce.
Asian equities extended the gains for the fifth consecutive day, as slight optimism for further monetary easing eased the jitters and fears, but pessimism will find its way back to control the markets, in case weak fundamentals continue to flow.
Furthermore, investors seem to be waiting for the downbeat data from the world's largest economy, as the flow of weak fundamentals could lead U.S. lawmakers to take further steps into consideration, where a third round of quantitative easing could be possible after the downbeat employment change seen yesterday in New York session, where the private sector added less than expected jobs into the market, which lifted the unemployment rate to 10.0%.
However, flow of weak fundamentals in Europe could support the shiny metal to trade higher, where downbeat data could reflect the worsening debt crisis, which has supported gold to trade higher and higher by time especially in July and August, when the metal set several all-time records.
Before a while, the euro zone, Germany and Switzerland released the PMI manufacturing index, where the index contracted further in the Euro zone, and retreated in Germany and Switzerland, reflecting the consequences of the worsening debt crisis, which is forcing downside pressures on the euro zone pace of growth. After the several attempts from lawmaker in the zone to overcome the crisis, they seem to fail every time, where we can see the crisis next victims are larger economies as Italy, Spain and France are the possible victims.
Among other precious metals, silver inclined today extending the gains recorded in the past two sessions, where after the opening of $41.50 per ounce, the metal retreated to a low of $41.20. Silver also reached a high of $41.99 and is currently hovering around $41.55 an ounce.
Platinum retreated today after the opening of the Asian session at $1855.00 per ounce and recorded the highest at $1857.00 and the lowest at $1848.00, and is currently trading around $1852.00 an ounce.