Gold retreats after the BoJ intervention

Another week started today, while precious metals are trading negatively, cutting some of the huge gains recorded in the past week, where metals are affected by the Bank of Japan's intervention to curb the rapid incline seen on the yen, which set fresh all-time recorded against the U.S. dollar today.

Gold opened this week at $1742.37 per ounce, and the recorded the highest at $1744.79 and the lowest at $1704.60, and is currently hovering around $1713.60 per ounce.

Over weekly basis, the metal opened the past week at $1641.45 per ounce, and recorded a high of $1752.36 and a low of $1635.27, and closed the session in New York on Friday at $1743.70 per ounce.

The Bank of Japan intervened in the market today for the third consecutive time in 2011 to control the rapid incline seen on the Japanese yen against the U.S. dollar, where the pair reached new all-time record driving the Bank to stop this incline, which hurt the economic recovery and slowed growth especially after Japan is fighting the results of the disaster that hit the nation in March.

The Bank of Japan's intervention affected the market as a whole, where we can see that the bank sold huge amounts of yen and bought dollars instead, which supported the dollar to incline sharply forcing downside pressures on other major currencies, commodities and precious metals to trade lower at the beginning of a new week.

The Japanese yen opened this week at 75.68 against the U.S. dollar, and recorded a low of 75.55 and then rebounded to the upside after the Bank of Japan's intervention, to set the highest at 79.53, and is currently trading around 78.75.

Moreover, we expect metals to be very volatile and to fluctuate heavily during this week, with intensive fundamentals from major economies in addition to the G20 meeting on November 3 and 4.

This week, investors will keep their eyes concentrated on the European Central Bank and the Federal Reserve, awaiting the rate decisions from banks and actions to be taken by policy makers to support growth, with expectations that both of the banks will leave rates steady, especially when the U.S. economy grew 2.5% in the third quarter, while the European leaders provided a comprehensive plan to overcome the debt crisis and support recovery.

Turning to the daily fundamentals which could affect the metals' movement today, the consumer price index annual estimate along with unemployment figures from the euro zone will highlight the session today, with hopes that European unemployment could decline from the 10.0% record.

Among other precious metals, silver opened this week at $35.24 per ounce and recorded the highest at $35.39 and the lowest at $34.11, and is currently trading around $34.42 per ounce, cutting some of the huge gains seen in the past week.