Gold fluctuates ahead of the BoE rate decision
Gold extended the losses incurred in the past two sessions after the opening today, yet recovered some of these losses after some upbeat news from Italy, which has accelerated the implementation of the austerity measures in order to control the largest debt in the euro zone and protect itself from the debt crisis contagion.
Gold opened the session in Asia today at $1769.75 per ounce, and then recorded the highest at $1773.32 before reversing to a low of $1753.71, and is now trading around $1766.28 per ounce.
Moreover, the Bank of England rate decision today came to add more uncertainty in Europe, with expectations that the Monetary Policy Committee will vote to keep rates and the Asset Purchases Facility steady at 0.5% and 275 billion pounds respectively; however, we don't exclude any surprises from the Bank especially after the European Central Bank unexpectedly cut rates by 0.25% in order to revive growth, which has been affected sharply from the deepening debt crisis.
Moreover, Greek lawmakers didn't find any common grounds yet, which led the Greek president to call for an emergency meeting with party leaders and the Prime Minister, George Papandreou, especially after criticism grew over the political conflict in Greece, in addition the nation needs to assign new Prime Minister as soon as possible in order to provide a written acceptance for the second bailout deal to obtain the sixth tranche of last year's bailout package in attempts to avert an early default.
Italy rushed to implement the austerity measures needed to reduce the huge debt the country handles as the European Union demanded Italy to protect itself from following Greece's steps into the debt crisis, where the vote is expected sometime on Friday, as Italian Senators will vote on the austerity measures, which includes assets sales along with raising retirement age to 62 from 60, and then the following day the House of Deputies will finalize the vote.
We notice that the main focus remains on Italy and Greece and on Europe in general, especially with rising political instability and conflicts, where European governments should act firmly and quickly to quell jitters and rising fears, before Italy follow Greece and then the debt crisis could spread widely within the euro area region, and in result could trigger a euro collapse.
Among other precious metals, silver started the day at $34.01 per ounce, and recorded a high of $34.17 and a low of $33.31, and is currently hovering around $33.77 per ounce.
Platinum on the other hand, which is trading below the shiny metal, opened the session at $1628.5 per ounce and recorded the highest at $1633.25 and the lowest at $1610.75, and is trading in the moment at $1627.5 per ounce.