Gold dropped for the fourth day on Thursday as uncertainty prevailing in markets that the European summit on October 23 may be delayed eroded demand on commodities and risky assets. As investors wait for the European council meeting on Saturday to see a decisive and comprehensive plan to the two-year debt crisis, worries increased that European leaders will split among the role played by the ECB and after the recent German announcements that the coming meeting will not be the final in solving the crisis. Today, European Commission President Jose Manuel Barroso said he is optimistic that European leaders will reach an agreement this weekend to raise the firepower of the European rescue fund. Also, the EU and IMF referred in a draft obtained by Reuters that paying out a sixth installment to Greece should take place as soon as possible, yet concerns spreading in markets. On the other hand, data from the U.S. showed that initial claims fell to 403,000 in the week ended October 15 from the revised 409,000 a week before, higher than forecasts of 400,000, while existing home sales slipped 3.0% in September from the revised 8.4% rise, adding more negativity to the sentiment. Spot gold is traded around $1624.55 an ounce after recording a high of $1644.86 and a low of $1607.27. In the FOREX market, the dollar, yen and franc edged higher where the franc was the most advancing among it major peers. The dollar is currently traded near the day's opening level of 77.05 after touching a high of 77.43 and a low of 76.70, according to the dollar index which tracks the dollar movements versus six major currencies. Crude oil for November delivery slipped to trade around $86.04 a barrel compared with the day's starting level of $88.31.
|
To ensure you receive such e-mails in the future, please add ecPulse.com to your list of approved senders.
No comments:
Post a Comment