Gold fluctuates heavily today with the mixed sentiment in the market
Gold declined today in the Asian session, but then rebounded to the upside to currently trade above opening levels, where the metal is fluctuating heavily amid the mixed sentiment seen in the market, as the U.S. president, Obama proposed a $477 billion to support the economy and boost the labor market, but on the other hand, pessimism dominates stock markets as most of the European equities are trading lower today.
Gold advanced today after opening the Asian session at $1870.05 an ounce, recording a high of $1881.50 and a low of $1853.67, and is currently trading around $1878.50 per ounce. Gold extended the gains recorded yesterday, recovering the losses incurred during the week.
We expect gold to decline today as Obama proposal should reflect some positivity in the market, where the plan should revive the pace of recovery in the world's largest economy and could stimulate growth and aid the labor market. Furthermore, the Fed's chairman said yesterday that U.S. lawmakers have the appropriate tools and they will decide how to use them in the next meeting if economic conditions require further monetary policy easing.
The U.S. President, Barrack Obama has challenged the national depression facing the U.S. economy with a proposal of $447 billion to be injected into the economy to support jobs and improve growth, where this jobs plan aims to provide more jobs and to reduce layoffs. The President proposal is expected to improve spending on infrastructure, reduce the number of educators' layoffs and cut taxes paid by small businesses and workers.
Moreover, fundamentals released in Germany today reflected rising inflationary pressures, as the annual consumer price index rose 2.4%, while the European Union harmonized index rose to 2.5%.
Silver also surged today amid extending the gains recorded in the past session, where the metal opened the session today at $42.27 an ounce, and recorded a high of $42.67 and a low of $42.06, and is currently trading around $42.45 an ounce.
Platinum also gained today, as the metal opened the session at $1846.00 an ounce, and reached a high of $1861.00 and a low of $1846.00 and is currently hovering around $1854.00 per ounce.