Gold climbs to all-time record amid high uncertainty
Gold advanced today after opening the Asian session, where economic conditions and the future of the global pace of recovery is still highly uncertain, where the metal is mainly affected by the slowing pace of growth across the globe along with weak performance of the manufacturing sectors of major economies, fueled by the deepening debt crisis in Europe in addition to the rising-debt concerns in U.S, especially after the non-farm payrolls unexpected figures, which reflected worsening labor market in the world's largest economy, raising fears regarding another phase of recession, which could hit the global economy, boosting demand for gold as hedge against uncertainty.
Gold advanced today after opening the Asian session at $1900.80 per ounce, extending the gains recorded in the past sessions. The metal climbed to all-time record today set at $1920.90 an ounce after reaching a low of $1893.90, while the metal is trading now around $1916.22 an ounce.
Gold resumes the upside journey after the heavy fluctuations seen before, where non-farm payrolls sluggish figures, reflected that the U.S. economy added none jobs during August, which boosted demand for safe havens after the downbeat growth outlook was confirmed.
The worsening debt crisis has affected European markets, with pessimism is still dominant and fears are rising, as the shiny metal gained a lot and set all-time records several times through the past two months on debt woes and jitters.
Today Italian Prime Minister is to face critical decision from the parliament, which is expected to vote on 45.5 billion euros austerity package, however, a general strike is to hit the Italian streets today opposing those measures, which made the decision much difficult for law markers in Italy, which handle the largest debt in Europe.
Today, investors are waiting for the critical euro zone gross domestic product figures, where the reading is expected unrevised at 0.2%, reflecting the slow pace of recovery in Europe, however, worse than expected figures could add more woes and jitters to the market and could support the wave of pessimism to spread more as European markets suffered from the low confidence and the weak sentiment.
Furthermore, the shiny metal is supported by the pessimism that hit global equities, as we can see Asian equities extended the losses recorded yesterday, while the European and U.S. equities closed the session yesterday with huge losses for the second day.
Among other precious metals, silver inclined today recovering some of the losses recorded in the past session, where after the opening of $42.80 per ounce, the metal rebounded to the upside reaching a high of $43.35 and is currently hovering around $43.01 an ounce.
Platinum also surged today, as demand for precious metals and low yielding currencies surged, where after opening the session at $1882.00 per ounce; the metal surged to a high of $1891.00 and recorded a low of $1876.00, and is currently trading below the yellow metal around $1890.00 an ounce.