Gold managed to recover some of its losses incurred throughout the week as a smooth bond selling by the Spanish Treasury as well as the upbeat data released from the U.S. yesterday enhanced demand on commodities. Tensions eased today after the Spanish government which lowered concerns after the rise in Italian bond yields this week. Later in the day, Italian Prime Minister will face confidence vote on passing the austerity measures announced on December 4 to cut the country's huge budget deficit. Still, the main focus is on the latest developments from the euro area where next week, many euro area economies prepare for bond selling. On the other hand, data released yesterday from the United States gave some positivity to the sentiment. Continuing claims for the week ended December 03, came in lower than expected at 3603 thousand compared to the prior revised estimate of 3599 thousand and median estimates of 3637 thousand. Also, empire manufacturing index showed advance and current account deficit narrowed. Gold is bracing for the strongest weekly drop in three months as the tensions from the euro area after encouraged demand on the dollar as a refuge, noting that the shiny metal has recently lost its safe-haven characteristic. This week, what made the gold fall sharply is the breach to two crucial levels which are $1700 then $1600 which caused the trading to move in the $1500 ranges. Spot gold is currently traded around $1590.80 an ounce after recording a high $1601.21 and a low of $1568.90. Crude oil, also, is currently traded higher at $94.10 a barrel compared with the day's opening of $93.35. In the currency market, the dollar fell for the second day, according to the dollar index, which tracks the greenback's movements versus six major currencies, which is currently hovering around 80.00 compared with the day's opening of 80.28.
|
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