Metals are mixed ahead of the critical fundamentals this week
With the start of another week, precious metals are still facing downside pressures and also still biased to the downside, affected by the strong U.S. dollar, which inclined sharply on Friday sending metals south.
Over weekly basis, the shiny metal declined sharply last week, where the metal opened the session at $1773.15 per ounce and recorded the highest and the lowest on Wednesday at $1790.80 and $1686.00 respectively, and finally closing the session with losses at $1712.26 per ounce.
Today, gold shed so far around 0.39% or $6.72 per ounce to $1705.88 per ounce after the opening of $1712.60 per ounce. The metal set so far the highest at $1717.82 and the lowest at $1705.68 per ounce.
However, metals are mixed despite the significant weakness seen, where positivity spread in the market after the Chinese services sector advanced beyond expectations in February, but after the nation lowered growth forecasts for 2012 to the slowest pace in eight years pessimism returned adding tension and instability to the market.
In addition, instability and tension spread further in the market after details over expanding the European rescue fund are still unclear, where 25 European nations already agreed to provide the European rescue fund with more liquidity to fight the debt crisis; however, more information are still unknown, while markets are still waiting the G20 nations to declare their intention to provide the International monetary Fund with more resources to help in ending the debt crisis once and for all.
Euro area finance ministers on Thursday agreed to hand Greece funds to complete the debt swap deal with the private sector before the deadline set on March 8, noting that ministers said that Greece would receive further support once the nation meets all the requirements set by the Troika.
On the other hand, Moody's the rating agency downgraded Greece's credit rating to C from Ca on Friday as the nation started the debt swap deal with the private sector.
This week, important and critical events will highlight the sessions, and as we can see dear reader market tension and instability caused volatility and triggered heavy fluctuations to the market, where due to the complicated and mixed data and events concerns are still dominating investors, which forced mixed pressures on precious metals to trade narrowly.
Among other precious metals, silver declined so far 1.64% or $0.56 per ounce to $34.22 per ounce, after recording the highest at $34.92 and the lowest at $34.19, noting that the metal started the session this week at $34.79 per ounce.
Platinum cut as well around 1.84% or $31.25 per ounce, trading now around $1668.25 per ounce, after the opening of $1699.50 per ounce. The metal set a high of $1701.25 and a low of $1668.25 per ounce.