The shiny metal trades narrowly today, negatively biased
Gold declined today after opening the Asian session, cutting some of the gains recorded yesterday; however the metal is trading within narrow levels since the beginning of the session awaiting heavy fundamentals today, as the United Kingdom is to release the jobs report today, while several and critical fundamentals are to be released in the world's largest economy.
Gold slumped today after opening the session at $1833.50 per ounce, recording a high of $1844.72 and a low of $1819.60, and is currently hovering around $1822.72 an ounce.
Mixed sentiment are affecting the metal's movement, however, the general sentiment is still pessimism in the market, as the outlook for growth is still shaky, while the European debt crisis is still worsening, yet jitters and fears eased slightly after the German Chancellor, Angela Merkel implicitly explained that Greece will not be allowed to default, as the Chancellor said that the euro system does not allow for orderly insolvency to any member.
Moreover, the U.S. dollar returned to continue the upside movement today, recovering the losses seen yesterday after the heavy fluctuations, which forced more negative pressures on the shiny metal to trade lower today.
As we noticed, the shiny metal from the beginning of this week is moving against the low yielding currency, where the scenario seen on Monday repeats itself today, as we can see the shiny metal retreated today, silver also retreated today and major currencies are weakening against the dollar, while Asian equities slumped, as all the Asian main indexes are trading in red, in the time European stocks are also trading lower, where the U.S. dollar is forcing negative pressures on commodities and high yield currency to trade lower today.
The U.S. dollar opened the session today at 77.06 and advanced a high of 77.48, after recording a low of 76.91, while the index is currently trading at 77.37.
Furthermore, all eyes are still focus on Europe today, where the Italian Prime Minister, Silvio Berlusconi's proposal could be approved by the parliament, as lawmakers will meet to discuss the proposal for a final vote, which reflects Italy's effort to overcome the debt crisis and prevent it from spreading within the economy. A vote of confidence today on the 54 billion euros austerity measures should support the fragile confidence in the market, and reduce the sharpness of the dominant pessimism and could support the slight bearishness seen on the metal today.
In addition Italy held talks with China for investment in the country, which could support Italy to overcome the worsening economy, which came before the Chinese Premier statement today at the World Economic Forum that China is ready and willing to help Europe to overcome the debt crisis.
Moreover, the Greek Prime Minister George Papandreou will hold a call conference today with the German Chancellor and the French President amid the ongoing speculations that Greece could default soon.
Investors are waiting for the jobs report from the United Kingdom, where the figures could have deep impact on the markets, as a worsening labor sector could add more confirmations regarding U.K entering stagflation phase, which reflects rising inflation along with recession concerns.
Silver also declined today after the opening at $40.95 per ounce, cutting some of the gains recorded yesterday; the metal is currently trading around $40.67 per ounce around the lowest intraday record at $40.61, while the metal reached a high of $41.22 during the session today.
Among other precious metals, platinum inclined slightly today after opening the session at $1819.00, recording a high of $1824.00 and a low of $1805.00, and is currently trading lower than gold around $1824.00 per ounce.