Gold fluctuates as the sentiment is mixed ahead of the awaited major data from Europe
Yesterday, gold gained sharply as optimism spread in the market, where the metal gained momentum after the U.S. dollar declined sharply, easing pressures forced on metals, commodities and other major currencies, where the flow of upbeat fundamentals from China, Europe and the world's largest economy spread positivity in the market on speculation major economies are back on the right track of recovery.
Gold gained $7.00 or 0.44% after the opening of $1603.50 per ounce, to currently trade around $1610.50 per ounce. The metal recorded the highest at $1611.53 and the lowest at $1592.75 per ounce, and is expected to extend the gains recorded in the past session in case Europe continues on providing markets with more upbeat fundamentals today.
All eyes are looking forward to the first quarter of this year, where this quarter is set to determine the faith of the global economy during the entire year. However, markets are fluctuating today ahead of the awaited critical fundamentals from Europe.
Gold is mixed ahead of the awaited macroeconomic fundamentals from Europe, where rising uncertainty triggered more demand for the shiny metal; however, expectations that inflation in the euro-area region is to retreat to 2.8% form 3.0% forced downside pressures on the metal, which is considered as the main hedge against inflation.
The euro zone and Germany are to release the final purchasing managers' index (PMI) for services, where the index is expected to linger in December at 52.7 and 48.3 respectively. Markets are looking forward to the release of these data, where after the improvement seen in the performance of the manufacturing sectors yesterday, investors expect some improvement in the services sector also today.
Moreover, the United Kingdom will release the PMI construction today, which could have expanded to 52.3 from 51.5 in the month of December. In case the data was confirmed optimism will be seen in the market as the United Kingdom struggles not to slip into another phase of recession and data in line with expectations should indicate that the United Kingdom was able to handle the mounting pressures so far.
Yesterday, a Greek spokesman said that Greece will have to leave the euro in case it failed to obtain the second bailout package worth 130 billion euros in the coming few weeks, where Greece is still discussing the details of the rescue plan with international lenders.
Among other precious metals, silver advanced as much as 0.20% or $0.06 per ounce after the opening of $29.60 per ounce, to currently trade around $29.37 per ounce. The metal set the highest at $29.76 and the lowest at $29.11 per ounce.
For platinum, the metal added 0.58% or $8.25 per ounce after the opening of $1426.00 per ounce, to currently trade around $1434.25. The metal reached a high of $1437.25 and a low of $1416.50 per ounce.
Palladium on the other hand lost 0.11% of $0.75 per ounce, to currently trade around $665.00 per ounce after the opening of $664.25 per ounce. The metal reached the highest at $667.0 and the lowest at $654.50 per ounce.