Gold corrects some of the huge losses Gold corrects some of the huge losses
Gold declined sharply yesterday after the annualized U.S. gross domestic product figures showed that the world's largest economy expanded beyond expectations in the fourth quarter by 3.0%, followed by Bernanke's comments, which indicated that the Feds don't intend to add further stimulus, the thing that strengthened the U.S. dollar and forced downside pressures on the metal to drop sharply.
Gold started the session today at $1696.85 per ounce and added so far 1.35% or $22.90 per ounce to $1719.75 per ounce. The metal set so far the highest at $1725.27 and the lowest at $1694.55 per ounce.
Yesterday, Ben S. Bernanke said in a testimony before the release of the Beige Book that highly accommodative monetary policy meets Fed's goals, while the Chairman of the Federal Reserve confirmed the goals of reaching maximum employment and price stability. However, markets reversed sharply to the downside yesterday after Bernanke gave no clues regarding additional stimulus or another round of quantitative easing.
Today, gold returns to correct some of the huge losses incurred yesterday, where the metal rebounded to the upside as investors returned to hold more of the shiny metal ahead of the huge load of critical fundamentals to be released by major economies across the globe.
Moreover, a slight wave of relief spread in the market today after the Chinese PMI manufacturing expanded beyond expectations in February, supported by the better than expected growth data from Switzerland, which has beaten contraction forecasts with a slight expansion.
Greece also supported the sentiment and the euro to standstill against the U.S. dollar today, where the nation approved a new round of cuts in pensions and health care in order to avert financial collapse, following the 3.2 billion euros cuts approve yesterday, encouraging the euro to rebound ahead of the European Summit due today and tomorrow.
Volatility and fluctuations are expected today due to the heavy load of fundamentals, where manufacturing and inflation data while highlight the European session today, followed by the unemployment figures. During the U.S. session, the income report in addition to the ISM manufacturing from the world's largest economy will lead the movement in the market.
Among other precious metals, silver also advanced today after the opening of $34.68 per ounce, adding 0.51% or $0.18 per ounce to $34.86 per ounce, recording the highest at $35.18 and the lowest at $34.53 per ounce.
Platinum also surged supported by the manufacturing data from China as the metal is highly demanded as an industrial element. The metal added so far 0.60% or $10.00 per ounce, trading around $1690.75 per ounce after the opening level of $1680.75 per ounce. The metal surged to the highest level after the news reaching a high of $1702.38 per ounce, after recording the lowest at $1675.75.
Palladium on the other hand declined slightly by 0.25% or $1.75 per ounce to $700.25 per ounce, after recording a high of $710.13 and a low of $698.75, noting that the metal started the session at $702.00 an ounce.