Gold's recovery extended further overnight but momentum was so far weak. Safe-haven demand reduced mildly after successful Portugal bond auction yesterday. Focus will turn to ECB meeting today, as well as Spain's auction of EUR 2-3b in five-year bonds. Lots of questions would likely be asked about the ongoing sovereign debt crisis in peripheral countries and the ECB's tendency to purchase more debts. After all, Eurozone debt woes will remain a main theme of the markets and the developments will continue to affect risk appetite/aversion and the developments in gold.
WTI crude oil remains firm above 91 level after breaching 92 level briefly overnight as risk appetite is providing some support. Easing concern of imminent Portugal bailout sent US stocks higher with DOW up 0.72%, or 83.56 pts to close at 11755.44. The development confirmed up trend resumption and we should seen more strength in DOW to projection target at around 11865. The development should likely take Crude oil through recent high of 92.58.
The economic calendar is busy today. On the data front, Japan machine orders dropped -3.0% mom rose 1.6% yoy in November. Australia job market grew less than expected by 2.3k in December, while unemployment rate dropped to 5.0%. UK Industrial and manufacturing production, Canada trade balance, US jobless claims PPI and trade balance will be the main focus in US session. ECB and BOE rate decision will also be two main focuses.