Optimism lingers in the market ahead of the Merkel-Legarde meeting
Yesterday, gold was able to recorded gains during the Asian and the European sessions; however, after the results of the French-German meeting, the shiny metal fluctuated heavily and cut the gains recorded to close the session in New York with losses, especially after investors held less gold after Merkel and Sarkozy reduced the sharpness of uncertainty in the market.
Today, gold was able to recover the losses incurred in the past session, where the metal gained strength as the slight wave of optimism seen yesterday extended to this session, supported by the cheerful trade balance figures from China, where the Chinese trade surplus widened unexpectedly to $16.52 billion from $14.53 billion, beating median estimates of $8.80 billion of surplus.
The improvement seen in the trade balance was led by the sharp slowdown in imports, where the annual import index slowed to 11.8% from 22.1%. The annual exports index remained resilient at 13.4%.
As of 02:07 EST, gold added 0.60% or $9.65 per ounce to currently trade around $1621.23 after the opening of $1611.57 per ounce. The metal recorded so far a high of $1623.28 and a low of $1607.80 per ounce.
The U.S. dollar eased as optimism is dominating the market, which in result eased the downside pressures forced on the metals, commodities and currencies, which are trading higher as investors appetite for risk improved.
Today, with the lack of major fundamentals from the world's largest economy and from Europe, eyes will be focused on the meeting between the German Chancellor Angela Merkel and the International Monetary Fund chief Christine Legarde in Berlin, which supported the optimism and the metal in result due on speculation leaders are focusing on the solving the debt crisis with the start of this year.
Moreover, the concentration will be on the several bond sales awaited from the euro-area region today, where Netherlands will started the bond auctions at 09:00 GMT, selling up to 3.4 billion euros of 3-year bonds. Other nations will also sell bonds, where at 10:00 GMT Greece, Austria and Malta will auction bonds with different maturities; however, the focus will be on the Greek bond sale, where the Treasury will sell 1.25 billion euros of short-term 6-month bonds. Slovenia will also auction bonds at 12:00 GMT.
As of 02:09 EST, silver advanced 0.56% or $0.16 per ounce after the opening of $29.02 per ounce to trade in the moment around $29.18 per ounce. The metal set so far the highest at $29.30 and the lowest at $28.95 per ounce.
As of 02:10 EST, platinum was 0.42% or $6.00 per ounce higher, reaching now $1432.00 per ounce. The metal started the day at $1426.00 per ounce, and reached a high of $1438.88 and a low of $1421.25 per ounce.
As of 02:14 the metal added 1.22% or $7.50 per ounce, to currently trade around $623.00 per ounce after the beginning of $615.50 per ounce. The metal hit the highest at $628.00 and the lowest at $614.50 per ounce.