Gold to gain more due to the high level of uncertainty ahead of the major events awaited today

With the start of this busy session, gold gained some momentum and extended the gains recorded in the previous session, where investors are demanding more gold as a hedge against uncertainty ahead of the major events awaited today.

Yesterday, gold advanced and extended the gains recorded this week, where the metal was able to hold onto the gains despite the strengthening U.S. dollar, which forced downside pressures on other metals, commodities and currencies.

Today, markets are highly uncertain and eyes are focused on several major events, where Italy and Spain are to sell 17 billion euros of bonds in the first test in 2012; however, the nations will be under pressure as rating agencies are tracking the yields and demand for those bonds, especially when both nations are under negative watched and are threatened will a possible credit rating downgrade.

Gold started the session today at $1641.97 per ounce and recorded the highest at $1648.30 and the lowest at $1640.35, and is currently trading around $1647.65 per ounce after adding $5.68 per ounce or 0.35%.

Spain will auction 5 billion euros of 3-year and 4-year bonds at 09:30 GMT, followed by Italy which is to sell as much as 12 billion euros of short-term bonds, where Italy is projected to sell 8.5 billion euros of 1-year bonds and 3.5 billions of 132-day bills.

After the bond auction, eyes will be concentrated on the Bank of England and the European Central Bank rate decision, where the BoE is expected to hold rates unchanged at 0.5% and the assets purchasing program at 275 billion pound. The ECB is also expected to leave rates as they are at 1.0%, the lowest ever, yet the bank could provide markets with other moves to tackle the debt crisis especially after Fitch Ratings called on the bank to play a larger role in fighting back the crisis.

The European Central Bank president, Mario Draghi will hold a press conference after the rate decision, citing the ECB stance and mechanism in maintaining financial stability and fighting the debt crisis, where the president should present the new moves taken by the bank to save the common currency from the escalating debt crisis.

Gold is expected to fluctuate heavily and move violently today due to the several major events awaited today; however, the metal should ease after the rate decision, but in general the metal's movement after the events depends on whether the ECB will be able to quell jitters and satisfy markets with an appropriate plan to support nations in fighting the debt crisis.

Gold after the news should move in line with the sentiment in the market, where optimism should support the metal to extend the upside move, while fears and jitters are expected to reflect negative pressures on the metal which will cut the gains record today.

Among other precious metals, silver is currently hovering around $30.09 per ounce, after adding $0.12 per ounce or 0.38% compared with the opening level of $29.96 per ounce. The metal recorded a high of $30.12 and a low of $29.91 per ounce.

Platinum also advanced $4.00 per ounce or 0.27% after the opening of $1494.50 per ounce to trade in the moment around $1498.50 per ounce. The metal set the highest at $1505.00 and the lowest at $1491.00 per ounce.

Palladium recorded a high of $647.00 per ounce and a low of $638.50 per ounce after starting the session at $641.00 per ounce; however, the metal trades now around $645.00 after adding 0.62% or $4.00 per ounce.