Kumaresan Selvaraj pillai


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Tuesday, January 3, 2012

Fundamental Precious Metals

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Tuesday January 3 , 2012 14:03 GMT

Gold advanced with the rise in shares and drop in refuges with the improvement in the sentiment after the release of upbeat data from major economies and before the release of U.S. ISM manufacturing.   

The main focus in the market today remain on manufacturing data from major economies, where yesterday Chinese, Indian and Australian manufacturing showed progress in December offsetting the contraction for the fifth month in European manufacturing.

Today, Swiss and U.K. manufacturing figures came better-than-expected to add more positivity to the sentiment, while later in the day, U.S. ISM manufacturing is expected to record 53.4, the fastest pace in six months, from 52.7 in November.

Also, later in the day eyes will be on the minutes of the FOMC meeting while at the end of the week the main highlight will be the awaited non-farm payrolls.

Now, the shiny metal is continuing on the same track that it ended 2011 with where the yellow metal stopped to act as a safe haven which previously helped the metal to advance amid the escalating European debt crisis and sluggish global growth.

On the other hand, the dollar showed a drop to lowest level in two weeks versus the 17-nation currency, where the dollar index, which tracks the greenback's movements versus six major currencies, is currently hovering around 80.40 compared with the day's opening of 80.34.

Spot gold is currently traded higher around $1590.45 an ounce, continuing an upside correctional movement after dropping last week, after recording a high $1597.53 and a low of $1566.90. The shiny metal managed to remain above a critical support level at 1530.00 as the breach of this level would trigger further decline.

Crude oil also rose to trade above $100 a barrel at $101.35 compared with the day's opening of $99.71.  

 

 

 

 

 

 

 

 

 

 

 



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