Gold fluctuates heavily; eyes are focused on Slovak Parliament
Gold fluctuated heavily since opening in the Asian session, where after the metal benefited from the weakening dollar yesterday and was able to close New York session with huge gains, the metal returns to trade lower today, awaiting the critical and final vote from the Slovak parliament on the expanded powers of the European Financial Stability Facility.
The shiny metal opened in Asia today at $1676.40 per ounce, and recorded the highest at $1684.32 and the lowest at $1670.17, and is currently hovering around $1678.65 per ounce.
We expect gold to fluctuate heavily ahead of the final vote today, especially when market speculations point that Slovakia, the poorest country in the euro zone, could reject the expanded powers of the European Financial Stability Facility, where the agreement on July 21 included that all of the euro zone members' parliaments should grant a vote of confidence in order to implement the expansion of the rescue funds, which added tensions to the market, especially after the German Chancellor and the French President have finally found common grounds to use this facility to recapitalize banks and strengthening the overall banking sectors in order to secure and maintain financial stability in the zone.
Moreover, and as agreed back on July 21, the temporary rescue funds could also be used in buying European bonds in the primary and the secondary markets, recapitalizing European banks and finally providing precautionary loans to nations.
European leaders meeting on October 18 was postponed to October 23 due to the rising opposition against the German Chancellor, Angela Merkel who attempts to increase the private investors' share in the second bailout package for Greece, where the meeting was delayed to give European lawmakers more time to find final solution to end the debt crisis once and for all, with Greece remains the main focus, then securing the banking sector and finally supporting Italy and Spain to avert the debt crisis.
International inspectors are expected to provide International lenders (International Monetary Fund, the European Union and the European Central Bank) with a joint statement in order to decide on handing Greece the next tranche of 2010's bailout package, where Greece could go bankrupt by mid-November in case the next tranche was suspended.
Among other precious metals, silver also fluctuated heavily today after opening the Asian session at $32.06 per ounce, recording a high of $32.51 and a low of $31.85, and trades now around $31.95 per ounce.
Platinum also fluctuated heavily amid the mixed sentiment and volatility in the market, where after opening the session at $1523.50 an ounce, the metal recorded a high of $1545.50 and a low of $1521.50, and is currently trading at $1523.25 an ounce.