Gold to fluctuate today as this week comes to an end
As this week comes to an end, the shiny metal is biased to the downside as some investors tend to take profit on their positions ahead of the coming week, which stopped the metal's positive momentum temporary, awaiting next week to start again.
Gold fluctuated heavily today after the opening of $1658.35 per ounce; however, the metal shed 0.41% or $6.85 per ounce so far to trade now around $1651.50 per ounce. The metal set the highest at $1659.23 and the lowest at $1651.20 per ounce.
Yesterday, gold fluctuated heavily and closed the session around the opening level, which negated our expectations of an upside move; however, today we expect the metal to decline, correcting some of the gains recorded this week as investors will liquidate their bullish positions and take profit ahead of the coming week.
Moreover, the U.S. dollar gained momentum today, after the huge losses incurred during the week, where the strong U.S. dollar returned to force downside pressures on other commodities, metals and currencies.
The Italian Cabinet meets today in Rome at 10:00 local time to pass a growth plan proposed to spur growth and revive recovery in addition to boosting Italy's competitiveness and liberalizing the economy.
The plan proposed by the Italian Prime Minister will target gas stations and pharmacies and allow retailers to offer more discounts to spur spending. The plan will also force banks to lower their commissions and fees. The plan is expected to pass easily through the technocrat government as Italy is taking serious steps to fight the debt crisis and prevent it from spreading further into the economy.
Among other precious metals, silver also fluctuated heavily today, yet declined 0.47% of $0.14 per ounce so far to trade now around $30.49 per ounce after the opening of $30.63 per ounce. The metal set a high of $30.79 and a low of $30.46 per ounce.
Platinum shed 0.53% or $8.13 per ounce so far to current hover around 1514.00 after the opening of $1522.13 per ounce. The metal reached the highest at $1525.88 and the loesst at 1513.75
Palladium slumped 0.72% or $4.88 per ounce to currently trade around $672.25 per ounce after the opening of $677.13 per ounce. The metal recorded so far a high $677.50 and a low $671.25 per ounce.
Eyes will be focused during the session today on the retail sales index from the United Kingdom, searching for any signs of development. In addition, investors will eye the performance of the housing sector in the world's largest economy; however, the most important event will the Greek debt-talk, which are expected to resume for the third consecutive day.