Gold slumps over daily basis, yet gains heavily during the week

As this week comes to an end, gold gives up some of the huge gains recorded during the week, where the metal advanced sharply ahead of the European summit and benefited from the high level of uncertainty; however, the metal returned to decline slightly after leaders were able to quell jitters and rising debt woes.

Gold opened today's session at $1744.77 per ounce and recorded the highest at $1752.36 and the lowest at $1735.22, and is currently hovering around $1738.03 per ounce.

Over weekly basis, the metal gained in the first four sessions and heads towards large weekly gains, despite the mixed demand today, where the metal opened this week at
$1641.00 per ounce and recorded the highest at $1752.36 and the lowest at $1635.27 per ounce, supported by the heavy losses seen on the U.S. dollar.

Europe remains the main focus in the market, as investors are looking forward for the implementation of the measures and steps taken by leaders in the October 26 summit; however, optimism dominated the market yesterday after the cheerful results, while gold gained heavily in the past session due to the weakening dollar and mixed sentiment.

We saw a relief rally yesterday along with rising demand for risky investments, which reflected negative demand for the U.S. dollar and strong demand for gold; however, we expect volatility and heavy fluctuations to dominate the market today with lack of major fundamentals from Europe and Asia today and especially when this week comes to an end, where investors will take profit and close their financial positions ahead of the coming week.

Markets will also focus today on the income report from the world's largest economy, with a positive outlook that the report will bring more optimism to the market as it will show improvement in income and spending levels, especially after the upbeat gross domestic product figures, which showed that the U.S. economy grew beyond expectations by 2.5%.

The income report, which consists mainly of the personal income, the personal spending and the personal consumption expenditures; expectations suggest that the personal income could have improved by 0.3% from the previous drop of 0.1%, while the personal spending index is projected to rise by 0.6% from the previous 0.2% expansion.

Moreover, sliver opened the session today at $35.05 per ounce, and recorded a high of $35.66 and a low of $34.93, and is trading slightly now around $35.23 per ounce.