Gold trades narrowly, positively biased
With the start of the session today, gold inclined slightly after European finance ministers provided some details over the International Monetary Fund role in fighting back the crisis, which eased jitters and rising debt woes in the market and also eased demand for low yielding currencies and in result eased downside pressures forced on metals to trade higher now.
Gold opened the session today in Asia at $1593.30 per ounce, and recorded the highest at $1601.27 and the lowest at $1592.02, and is currently trading around $1600.22 per ounce, recovering the slight losses incurred in the past session.
The U.S. dollar eased slightly after reaching the highest record seen since January, which eased the pressures forced on other currencies, metals and commodities, where the U.S. dollar benefited from fears seen in the market, but today after European finance ministers provided details over the International Monetary Fund in healing the crisis, markets recovered some of the losses incurred earlier, yet we assure that the sentiment is still shaky and confidence remains fragile especially with the high volatility seen in the market.
Volumes are decreasing as the countdown to the end of the year started, where some investors preferred to remain aside, watching the market movement ahead of the coming year especially when low volumes bring more volatility and fluctuations to the market.
European Finance ministers held a teleconference yesterday, discussing the implementation of the decisions made earlier during the European summit, where policy makers reassured that the International Monetary Fund will be provided with an additional 200 billion euros to increase the facility ability in tackling the crisis.
The euro-area region will provide the International Monetary Fund with 150 billion euros in terms of addition resources, while the other 50 billion will be provided by other European nations. Markets improved slightly after the news, where investors conceive that the region at least is committed to implement the decision made back in the summit.
Now eyes will be focused on the United Kingdom which is expected to provide the largest contribution in the 50 billion euros set to be given to the International Monetary Fund from outside the euro zone. U.K. is expected to define the contribution with the start of next year, while other European nations including Czech Republic, Sweden, Poland and Denmark said they will participate, yet other details remain unknown.
Silver is hovering around $29.07 per ounce now, where the metal after the opening of $28.75 recorded the highest at $29.11 and the lowest at $28.62 per ounce.
Platinum inclined $10.25 per ounce or 0.73% after opening the session at $1411.00 per ounce, to currently trade around $1421.25 after setting a high of $1422.50 and a low of $1408.25 per ounce.
Palladium advanced 1.40% or $8.50 per ounce after the opening of $609.00 per ounce, to currently hover around $617.50. The metal recorded the highest at $617.50 and the lowest at $608.25 per ounce.