Gold fluctuated near 7-week low on Tuesday trading amid mixed vibes in markets before the FOMC meeting. The Fed is expected to keep interest rate at its low level of 0.25% when policy makers announce their decision at 19:15 GMT. In the market, the sentiment is mixed with more downside tendency after Fitch raised concerns that debt woes in the euro area would continue in 2012 as it said on Monday the decisions announced in last week's EU summit, which Fitch described as incomprehensive, are not enough to ease pressure on the euro zone nations. This announcement along with Moody's similar comments cast doubts regarding the effectiveness of the decisions made by the EU leaders last week. On the upside, a successful bond selling by the EFSF and the Spanish government made some improvement in the sentiment. The ESFS sold 1.97 billion euros of 91-day notes with an average yield of 0.2222%, while the Spanish government also saw a successful bond selling as the Treasury sold 4.94 billion euros of 12-month notes with an interest of 4.050% from 5.022% the previous auction, while the demand climbed to 3.14 times compared with 2.13. Gold has been affected by tensions in markets where it lost its characteristic as a safe haven where it currently moves side by side with equities at the time where the dollar and yen became the most favorite refuges. Spot gold is currently traded around $1666.31 an ounce after recording a high $1669.64 and a low of $1650.49, where the breach of $1700 paved the way for further decline. Crude oil, on the other hand, is currently traded higher at $99.12 a barrel compared with the day's opening of $97.86. In the currency market, the dollar is showing some decline, according to the dollar index, which tracks the greenback's movements versus six major currencies, which is currently hovering around 79.47 compared with the day's opening of 79.53.
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