Gold rebounds from two-month low on Thursday trading on technical movements as investors bet the market will do a correction after the drop seen this and last week. After the bearish movements seen recently, on the back of the concerns from the euro area, investors decided to become long on risky assets today on expected rebound as a correction to the fall. Moreover, data from the euro area came better than forecasts as PMI manufacturing advanced reading came in at 46.9 from the prior reading of 46.4, while the services contraction eased to 48.3 from 47.5 in November. Data 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 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 $1590.13 an ounce after recording a high $1593.93 and a low of $1564.40. The breach of $1600 paved the way for the metal to trade in $1500 levels where it found support around $1570. Crude oil, also, is currently traded higher at $95.50 a barrel compared with the day's opening of $94.88. In the currency market, the dollar halted its rally, according to the dollar index, which tracks the greenback's movements versus six major currencies, which is currently hovering around 80.15 compared with the day's opening of 80.54.
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