Optimism dominates the market with the start of this year
Spot gold inclined sharply today after the opening in Asia, extending the gains recorded on Friday as optimism dominates the market after the cheerful non-manufacturing PMI figures from China and also ahead of the manufacturing data awaited from Europe and the world's largest economy later on the day.
Gold started the session today at $1566.27 per ounce, and gained as much as 1.58% or $24.58 per ounce; to currently trade around $1590.85 (as of 3:11 EST). The shiny metal recorded the highest at $1592.65 and the lowest at $1566.25 per ounce.
China released earlier today the non-manufacturing PMI index, which showed that the performance of the services sector improved in December, where the sector expanded to 56.0 from the previous contraction of 49.7, which raised optimism in the market that China will not fall behind and suffer from the global slowdown, yet it will return stronger with the start of this year and it will led the global recovery again.
The optimism spread in the market led the Asian main equities to trade all in green, and in result the positivity extended to the European equities and now this optimism led the U.S. dollar to trade lower, boosting demand for the high yielding currencies, commodities and metals to trade higher as we can see gold, silver, oil and the common currency all trading with gains now.
Among other precious metals, silver opened the session today at $27.89 per ounce and then advanced 2.10% or $0.59 per ounce, to currently trade around $28.45 per ounce(as of 3:12 EST). The metal set the highest at $28.56 and the lowest at $27.92 per ounce.
Platinum opened the session today at $1401.00 and gained $7.75 per ounce or 0.55% to trade in the moment around $1408.75 per ounce (as of 3:18 EST), after recording a high of $1415.88 and a low of $1393.00 per ounce.
Palladium added $3.25 per ounce or 0.50% after the opening of $655.25 per ounce, to currently trade around $658.50 per ounce (as of 3:14 EST). The metal reached a high of $660.50 and a low of $649.00 per ounce.
We expect metals to extend the gains recorded earlier today after the release of the U.S. data in case it came in line with expectations, which suggest that the U.S. ISM manufacturing could have expanded in the fastest pace in six months to 53.4 from the previous 52.7 in December.
However, volatility and fluctuations are expected to gradually return through this week as investors started to return from the Christmas and New Year holidays, and now the volume is expected to gradually improve adding volatility to the market.