Gold fluctuates heavily with the start of a new week
With the start of a new week markets are fluctuating heavily within narrow levels, especially with the lack of critical fundamentals from major economies and after G20 put more pressure on the euro-area region to expand the firepower of the rescue fund in order to provide the IMF with more resources.
Gold fluctuated so far between the highest level recorded at $1778.45 and the lowest level recorded at $1769.93 per ounce, after the opening level of $1772.45 per ounce. The metal trades now around $1770.43 per ounce, cutting $2.02 per ounce or 0.12%.
Markets are fluctuating heavily today as investors are weighing the results of the G20 summit occurred yesterday and as markets are still weighing the possible expansion of the European rescue fund, which is expected now to combine the European financial Stability Facility or the temporal facility with the European Stability Mechanism, the permanent facility.
The merge of both facilities is projected to create 750 billion euros of firepower to fight back the debt crisis. G20 countries including China and Japan pledged to provide the International Monetary Fund with $500-$600 billion of liquidity in case European nations show commitment and expanded the firepower of the rescue fund.
In the final communiqué published by the G20, the euro area countries pledged at the meeting yesterday to reassess the strength of the bailout fund in March during the summit; however, eyes will be focused now on Germany which for so long opposed to provide any additional funds to the European rescue fund.
The volatility in the market led the metal's trading to become mixed further, where the fluctuating U.S. dollar added mixed pressures on the metal to remain very volatile.
Eyes will be concentrated on the several bond auctions in Europe today, where Germany, Italy, France and Belgium are to sell bonds with different maturities and now eyes will be tracking any changes in the demand and yields on those bonds, especially after the second bailout deal for Greece barely bought time for European nations to overcome the debt crisis.
Among other precious metals, silver shed so far $0.07 per ounce or 0.20% to trade around $35.32 per ounce after starting the session at $35.40 per ounce. The metal set so far a high of $35.60 and a low of $35.32 per ounce.
Platinum also shed 0.57% or $9.75 per ounce after the opening of $1713.00 per ounce to trade in the moment around $1703.25 per ounce, after recording the highest at $1717.5 and the lowest at $1702.00 per ounce.
Palladium was a little changed trading now around $710.50 per ounce after the opening of $710.75 per ounce. The metal set a high of $715.50 so far and a low of $710.30 per ounce.