Gold fluctuates within narrow levels
As this week begins, the shiny metal fluctuates within narrow levels due to the mixed fundamentals and comments from leaders and lawmakers, where Italy stepped up and ended the political instability, while Merkel called for a closer political union, in the time Indian inflation lingered above 9% for the eleventh consecutive month.
Gold started this week at $1788.14 per ounce, and recorded the highest at $1795.78 and the lowest at $1786.33, and is currently hovering around $1787.29 per ounce, after recording gains in the past week. Over weekly basis, gold opened the last week at $1753.40 per ounce, and recorded a high of $1802.70 and a low of $1735.76, and close in New York on Friday at $1788.35 per ounce.
Europe remains the main focus in the market, as Italian lawmakers attempt to restore confidence and prevent the debt crisis contagion from spreading into the Italian economy, where Italy in a first move ended the political instability after the lower house of deputies approved the austerity measures to cut the huge debt the nation handles along with blocking the debt crisis from spreading further, where after the vote from the lower house the former Prime Minister, Silvio Berlusconi resigned as promised and Mario Monti became the new Prime Minister.
Tensions and jitters eased in the market after Italy and Greece ended the political instability, yet all eyes are focused on Italy, which is considered too big to bailout, while the European Central Bank and the European Union called on the nation to handle its debt and avert following Greece's steps into deep crisis.
Moreover, the German Chancellor, Angela Merkel called for a closer political union, where she explained that the time has came from Europe to move toward closer political union and leaders attempt to prove that euro-area region is serious about ending the two-year old debt crisis.
In India, inflation exceeded the 9% level for the eleventh consecutive month, which reflected demand for the yellow metal as a hedge against uncertainty, where fears are growing that India, despite the 13-time raise in interest rates since March 2010, is unable to control inflation and is forced to keep the monetary policy tightening to prevent inflation from growing further, but now global expansion is affected by the situation in Europe, which leaves India with a big challenge.
Among other precious metals, silver opened the session in Asia today at $34.59 per ounce, and set the highest at $34.84 and the lowest at $34.36, and is trading in the moment at $34.39 per ounce, cutting some of the gains recorded in the past week.
Furthermore, platinum after opening the session in Asia at $1647.0 per ounce, reached a high of $1664.75 and a low of $1645.00, and trades around $1644.50 per ounce.