Gold retreated as the European session started and the flow of positive comments and news from European lawmakers supported the market to unwind slightly from the dominant pessimism, easing demand for gold, which is currently moving as a normal commodity rather than a safe haven. Gold opened the session today at $1650.28 per ounce, and set the intraday high level at $1668.75 and the intraday low level at $1630.87, and is currently hovering around $1653.30 per ounce. Gold eased during the European session after fluctuating heavily since the opening due to the eased jitters regarding the debt crisis and Greek default as several nations within the zone managed to pass the proposal of the expanded powers of European Financial Stability Facility through their parliaments, however, all eyes will be focused tomorrow on the German Bundestag, which set to decide on the expanded powers. Regarding the European Financial Stability Facility, All the euro-zone members need to accept the expanded powers in order to be activated, where until now Ireland, Italy, Spain, France, Belgium, Luxembourg, and Slovenia managed to pass the decision through their parliaments. The European Commission President, Jose Barroso called lawmakers to expand the powers of the European Financial Stability Facility (EFSF) and also urged the European Central Bank to do "whatever is necessary" to support the region and overcome the debt crisis in the zone along with easing jitters and pessimism in markets, where the President added in the European Commission annual meeting that Greece will always be a member in the euro zone and always a member of the euro, which also supported gold to return near the opening level. The Greek Prime Minister, George Papandreou was able to win a vote of confidence by 155 votes against 142 on property tax increase, where the Greek Parliament backed Papandreou’s proposal, which aims to meet budget deficit targets to avert default, which eased jitters and renewed fears regarding the Greek default, especially after Papandreou promised that Greece will grow soon, adding downside pressures on gold. |
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