Gold fluctuates heavily ahead of the EU finance ministers' meeting
With the start of the second session this week, gold fluctuates heavily ahead of the European Union finance ministers' meeting, where mixed pressures are affecting the metal sharply as we can see the high level of uncertainty supported the metal to incline; however, fears and market instability which led the U.S. dollar to fluctuate heavily forced downside pressures on the metal to trade lower, but in general the metal's movement today depends on the results of the ministers' meeting, as all eyes are tracking any developments regarding the Greek debt-talks, the fiscal compact and the creation of the European Stability Mechanism (ESM).
Gold shed 0.29% or $4.85 per ounce to currently trade around $1672.32 per ounce after the opening of $1667.47 per ounce. The metal set so far a high of $1680.18 and a low of $1671.40 per ounce.
Yesterday, the metal was able to gain more momentum and extend the gains recorded last week after euro zone finance ministers rejected an offer provided by the private sector on restructuring the Greek debt, which in result raised fears that Greece may default by March when the nation should pay back 14.5 billion euros of maturing bonds.
The private sector demanded Greece to return 4% on the new bonds issued in exchange for the existing Greek holdings in order to write down a nominal 50% of the debt, which worth around 100 billion euros; however, Greece and finance ministers said they cannot accept these demands on the new longer-term bonds, supported by the International Monetary Fund (IMF), as all the parts demanded the private sector to accept 3.5% coupon rate on the new bonds to be issued.
Gold is still trading within narrow levels as the European Finance ministers are meeting today to continue the discussions over the Greek debt-talks, the European Stability Mechanism and the fiscal compact between the European nations
Among other precious metals, silver also fluctuated heavily after the opening of $32.34 per ounce, where until now the metal shed $0.043 per ounce or 0.14% to currently trading around $32.29 per ounce. The metal reached a high of $32.76 and a low of $31.93 an ounce.
In addition, platinum lost 0.43% of $6.75 per ounce after the opening of $1561.75 per ounce to currently trade around $1555.00 per ounce. The metal set the highest at $1568.50 and the lowest at $1528.00 an ounce.