Gold trades within a narrow level, ahead of the Spanish budget announcement and inflation data from
This week has finally come to an end, while the precious yellow metal is still trading narrowly within a tight range affected sharply by the end of the week volatility and mixed demand, where some investors hold the shiny metal as a hedge against uncertainty ahead of the Spanish most austere budget expected to be announced today and also ahead of the euro zone finance ministers' meeting in Denmark, but on the other hand, the metal is losing momentum on speculation inflation have eased further in the euro-area region.
Gold added so far 0.23% or $3.74 per ounce to $1665.31 an ounce, compared with the opening of $1661.57 per ounce. The metal set the highest at $1667.18 and the lowest at $1660.03 an ounce.
In general, gold is biased to the upside today, where corrections and heavy fluctuations are highly possible due to the end of the week volatility as positive demand seems to be stronger, driven by fears over Spain and the annual budget expected today.
The Spanish Prime Minister, Mariano Rajoy, clarified that the government will announce the deepest round of austerity today, as the nation attempts to meet public deficit targets set by the European Commission, after the nation missed targets set of 2011.
However, the Spanish Street is widely opposing the austerity measures, where general strikes are taking place across the country, the thing that might add more difficulties for the government to apply as deep austerity as needed.
Moreover, European finance ministers will start their meeting in Denmark today, with eyes remained focused on the expansion plans of the European rescue fund, where Germany after opposing any increase in the capacity of the fund for so long returned to bend over under the mounting international pressure by clarifying a possible acceptance of any suggestions that might be on the table today.
Speculation in the market indicates that European finance chiefs will agree on boosting the firepower of the rescue fund by the end of the summit tomorrow, where it is widely projected that chiefs might combine the current European Financial Stability Facility (EFSF) and the permanent European Stability Mechanism.
On the other hand, inflation data expected from the euro zone prevents the yellow metal from extending the upside move and recording more gains, where inflation could have eased to 2.5% from 2.7% in March.
Among other precious metals, silver gained as well, added so far 0.63% or $0.19 per ounce, trading now around $32.45 per ounce. The metal set after the opening of $32.26 a high of $32.49 and a low of $32.19 per ounce.
Platinum advanced 1.08% or $17.65 per ounce to currently hover around $1645.40 per ounce, after recording a high of $1648.38 and a low of $1627.50, noting that the metal started the session today at $1627.75 an ounce.
Palladium also inclined today added 1.02% or $6.58 per ounce after starting the session at $645.50 per ounce, to currently hover around $652.08 per ounce. The metal reached a high of $655.25 and a low of $644.50 per ounce.