Gold advanced for the third day amid choppy trading, due the mixed sentiment prevailing in markets, before the G20 meeting. On the positive side, split among Greek policymakers regarding a referendum on receiving an EU/IMF bailout and expectations of government collapse eased default concerns, thereby damping demand on the dollar as a favorite safe haven. With the current split that will be mainly changed from accepting the bailout to staying in the euro area or not, hopes increased that the Greek government might fall in tomorrow's Parliament vote which mean that the referendum will probably be postponed. Greek PM assured that the country's membership in the euro area was never in question. On the downside, the ECB decision to cut interest rate by 25 basis points, where Draghi in his first rate decision mentioned that Europe is heading towards a mild recession by year end. U.S., ISM non-manufacturing composite for the U.S. slipped to 52.9 in Oct. from 53.0 in Sep. Yesterday, the Fed lowered growth forecasts and raised estimates for unemployment, whilst revealing that purchasing mortgage-backed securities is a valid option for the Fed to boost the slackening recovery. In the FOREX market, the dollar index, which tracks the greenback's movements versus six major currencies, is currently hovering around 77.01 compared with the day's starting level of 77.06, after reaching a high of 77.49 and a low of 76.66. Spot gold is traded around $1758.40 an ounce after recording a low $1722.64 and a high of $1766.55. Crude oil for December delivery retreated to trade around $93.70 barrel compared with the day's starting level of $92.54. Eyes will be on the G-20 leaders as they meet in Cannes, France, on Thursday and Friday to continue their discussions on the repercussions of the financial crisis on global markets.
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