Gold to gain amid the positivity in the market
Gold ended a strongly bullish week, as rising uncertainty in the market led investors to hold more of the shiny metal in order to protect their wealth against the major events awaited this week; however, the flow of upbeat fundamentals from Europe today supported the metal to extend the gains as the U.S. dollar depreciated and in result the downside pressures forced on the metals, commodities and other currencies eased as well.
Over weekly basis, gold opened the previous week at $1568.42 per ounce, and recorded the highest at $1631.10 and the lowest at $1566.90, and ended the week positively at $1616.85, gaining 3.10% or $49.43 per ounce.
With the start of this week, gold advanced $4.35 per ounce or 0.27% to currently trade around $1622.30 after the opening of $1617.95 per ounce. The metal recorded so far the highest at $1623.48 and the lowest at $1605.30 per ounce.
Positivity spread in the market after the upbeat fundamentals from Germany and Switzerland today, where despite the incline seen in the Swiss unemployment, the rate is still low compared to other major economies. Therefore, market perceived the upbeat fundamentals and a slight wave of optimism spread in the market.
Germany released the trade balance and the current account figures, where the trade and current account surpluses widened to 16.2 and 14.3 billion euros from 11.5 and 10.0 billion euros respectively, supported by the improvement seen in exports and the decline in imports, where the seasonally adjusted exports expanded beyond expectations to 2.5% in November, while imports shed 0.4%.
Moreover, the Swiss retail sales index supported the positivity in the market to extend, where the annual index expanded beyond expectations by 1.8% from 0.1% in November.
Merkel and Sarkozy are to meet today in Berlin, where both leaders are expected to discuss the mechanism of boosting growth in the euro-area region. In addition, leaders will also discuss the mechanism of fighting the escalating debt crisis and rising unemployment and also how to finalize the fiscal consolidation plan. Market speculations suggest that leaders could revive the Tobin Tax, which is promoted by France, but rejected by Britain.
Eyes will also be focused on the German and French bond auctions, where both nations are to raise short-term funds, as Germany is to sell 4 billion euros of 6-month bonds, while France will sold 1.7 billion euros of 1-year bills, 4.2 billions of 3-month notes and 1.8 billion of 6-month debt.
Among other precious metals, silver also ended a bullish week and is currently extending the gains recorded earlier, as we can see the metal added 1.33% of $0.38 per ounce to currently hover around $29.15 after the opening of $28.82 per ounce. The metal reached a high of $29.22 and a low of $28.61.
Platinum also added 0.82% of $11.50 per ounce to trade in the moment around $1413.00 per ounce after starting the session at $1401.50 per ounce. The metal set the highest at $1414.75 and the lowest at $1387.50 per ounce.
Palladium advanced 0.33% of $2.00 per ounce after the opening of $615.00 per ounce, where the metal recorded a high of $619.50 and a low of $605.50, and is currently hovering around $617.00 per ounce.