Gold fluctuates after ending a strongly bearish week
With the beginning of a new week, gold returned to fluctuate heavily within narrow levels, following the general sentiment in the market, where most of the currencies, metals and commodities are trading narrowly with the lack of major fundamentals from Europe and the superpower U.S. today.
Gold closed the session on Friday with slight gains, recovering the losses recorded earlier during the session, where the metal rebounded to the upside sharply after reaching a low of $1639.00 per ounce to close the session almost at $1660.00 per ounce, supported by the weakening U.S. dollar and the improvement in sentiment.
Gold shed so far 0.24% or $4.05 per ounce after the opening of $1660.00 per ounce to currently trading around $1655.95 per ounce. The metal set the highest at $1665.18 and low of $1655.70 per ounce.
Optimism spread in the market on Friday late during the European session after European officials clarified that Europe will expand the firepower of the European rescue fund by 200 billion euros to 700 billion in total.
Positivity remained evident in the market as European lawmakers are taking more steps to provide further economic stabilization, where these steps are set to prevent other nations from following the Greek scenario and falling into the debt-trap, a move that could spread relief that Italy and Spain are well protected from any possible financial shock.
During the weekend, European official also said that Greece will receive on Monday the first tranche of the second bailout agreed earlier, the thing that may relieve the Greek current financial situation; however, the official mentioned that Greece must focus on reviving growth without depending on bailout funds.
The International Monetary Fund also added some relief to markets, where the Managing Director, Christine Legarde said that the global economy is heading towards stabilization after the U.S. housing crisis and the debt crisis in Europe.
Gold might retreat today as markets are set to correct some of the huge gains recorded in the session on Friday, but in general markets are to return and continue the upside move this week and accordingly gold will gain more on optimism and relief.
Among other precious metals, silver declined as well, cutting so far 0.24% or $0.09 per ounce after recording a high of $32.78 and a low of $32.43, to currently trade around $32.44, compared with the opening level of $32.53 per ounce.
Platinum on the other hand gain on better growth prospects and signs of stabilization, where the metal gained so far 0.25% or $4.25 per ounce to $1675.75. The metal recorded the highest at $1683.75 and the lowest at $1669.75 after opening the session at $1671.50 per ounce.
Palladium moved in inline with gold and silver cutting so far 0.34% or $2.38 per ounce to $697.50 per ounce. The metal set a high of $703.50 and a low of $697.25 per ounce.