Gold recovers early losses amid high levels of uncertainty
Gold recovered some of the losses incurred earlier today amid the high level of uncertainty, where pessimism spread in the market and the sentiment deteriorated further after the U.S. rating agency placed 15 euro-zone nations under credit watch negative including Germany and France, which raised concerns that the euro area region would contract further and will slip back into another phase of recession, and finally nations could face possible downgrades as soon as the end of this week in case European leaders didn't agree on how to solve the two-year debt crisis.
Standard & Poor's, the rating agency, warned the euro-area region's nations with a possible credit rating cut in case European leaders fail to quell jitters and tackle the debt crisis during the coming summit this week. The Agency has placed the debt rating of 15 nations of the euro zone on a credit watch negative, as S&P's said systemic stresses are growing up, while credit conditions tighten in the euro zone.
Gold opened the session today at $1722.05 per ounce, and then reversed to the downside setting the lowest at $1708.28, but then the metal recovered the losses incurred as Europe joined the session today amid the rising level of uncertainty. The shiny metal trades now around $1721.64 per ounce, and reached the highest at $1724.18 per ounce.
The economic conditions remain highly uncertain in the euro-area region as all eyes are focused on the European summit at the end of this week, while investors are looking forward to the European Central Bank rate decision, where markets are waiting the mechanism of how European leaders will resolve the debt crisis, while investors wonder what are the next steps to be taken by leaders in regards to the European Financial Stability Facility and the International Monetary Fund, what facility is going to play the larger role in fighting the crisis, is it the ECB, the IMF or the EFSF.
These questions should be answered by the end of this week, or Europe will loose investors' confidence and this time European leaders will not be trusted until markets witness the implementation of the several decisions and plans set before, where the time has come for Europe to end the debt crisis, which started to threaten the largest economies in the zone and the monetary union itself.
Among other precious metals, silver gained slightly today after opening the session at $32.09 per ounce, to record the highest at $32.36 and the lowest at $31.75 and is trading in the moment at $32.24 per ounce, recovering some of the losses incurred yesterday.
Platinum also inclined today after starting the session in Asia at $1520.00 per ounce, where the metal gained 0.10% or $1.75 per ounce to currently trade around $1521.75. The metal reached the highest at $1526.50 and the lowest at $1508.00 per ounce.
Palladium gained 1.11% or $7.0 per ounce after the opening of $634.00, where the metal trades in the moment at $641.00 per ounce, after recording a high of $641.50 and a low of $630.63 per ounce.