Gold advances ahead of the EU finance ministers meeting

After ending a strongly bullish week, gold returned to continue the upside move ahead of the European Union finance chiefs meeting and also ahead of the European Union foreign ministers meeting, where gold is demanded as a hedge against uncertainty before the critical meetings in Europe and also ahead of the bond auctions waited from Germany and France.

Gold opened last week at $1634.32 per ounce, and recorded the highest at $1669.77 and the lowest at $1631.40 and closed the session in New York on Friday at $1666.50 per ounce.

Today, gold advanced 0.20$ or $3.28 per ounce after the opening of $1666.65 per ounce to currently trade around $1669.97 per ounce. The metal set the highest at $1673.30 and the lowest at $1662.68 per ounce.

Despite the bullish opening gap provided by the U.S. dollar, the metal was able to standstill and advance despite the downside pressures forced on the metal by the low yielding currency, where due to the high level of uncertainty in the market in addition to the breakdown in the Greek debt-talks, gold was able to extend the gains recorded on Friday.

The European Union foreign ministers are to meet today to decide whether to enforce economic sanctions on Iran which is running a nuclear violating program, where the foreign chiefs are to decide on whether to prevent European countries from obtaining Iranian oil or not, which in result could affect the metal that is correlated somehow with the movement of crude oil.

Moreover, the European finance minister are to meet today to discuss the economic conditions in Europe and the euro-area region, where the ministers are expected to be involved in discussions on the terms of the Greek debt restructuring along with creating the permanent European Stability Mechanism (ESM) which is expected to be presented in July.

The Finance chiefs are also expected to discuss the rules and conditions of the fiscal integration between European nations ahead of the European summit expected next week on January 30.

Germany and France are to raise funds from the capital market today by auctioning bonds, where both nations are selling debt in a day with high level of uncertainty. Therefore, markets will be moving violently and eyes will track the borrowing cost and demand on these bonds.

Silver added 0.16% or $0.05 per ounce after the opening of $32.18 per ounce to currently trade around $32.23 per ounce. The metal reached a high of $32.50 and a low of $31.80 per ounce.

Platinum on the other hand shed 0.38% or $5.88 per ounce to currently trade around $1529.00 per ounce after starting the day at $1534.88 per ounce. The metal set the highest at $1538.00 and the lowest at $1538.00 per ounce.