Gold to recover some of the losses
Gold inclined yesterday as the metal witnessed more demand after it lost value, where on Wednesday a heavy wave of profit taking led by the strengthening U.S. dollar led the metal to the downside; however, the metal returns to gain momentum and correct some of the losses incurred after the upbeat data from the world's largest economy.
The sharp incline in crude oil yesterday also supported metals to rebound to the upside, where investors and entities attempt to hold more of the metal to protect their wealth against inflation, which is led by rising energy prices. Crude oil barrel inclined yesterday to 110.00 from 107.00.
Gold closed the session yesterday with 1.24% of gains at $1717.00 per ounce, while silver advanced 2.51% to $35.51 per ounce and finally platinum inclined 1.31% to close New York session at $1697.00 per ounce.
Yesterday the income report from the world's largest economy unexpectedly advanced, where the core PCE index inclined to 1.9%, adding more inflationary pressures on the metal to trade higher as this index measures inflation and is used by the Feds.
ISM manufacturing index declined sharply yesterday to 52.4 from 54.1, which is a negative sign for the U.S. economy, where this data reflects weaker performance of the manufacturing sector in the U.S., which is result triggered demand to the shiny metal as a hedge against uncertainty.
Unemployment in Japan rose today to 4.6% accompanied with contraction in the economy itself, which added positive demand for the metal as a hedge against the global slowdown.
Moreover, investors are demanding the shiny metal as a hedge against uncertainty ahead of the European Summit, where European leaders will hold a private session today to discuss the Greek financial and political situation, while they will continue discussions over the overall situation in the euro zone in general.
Gold is currently trading around $1716.30 per ounce, while silver is trading with 0.96% losses around $35.17 per ounce, affected by speculation forces. Platinum gained so far 0.29% to currently trade around $1702.00 per ounce.