Gold retreated on Wednesday trading on worries from the euro area which damped demand on commodities and enhanced demand on refuges. Worries increased after Germany auctioned 4.06 billion euros of government bonds out of 5 billon euros offered, where the yield on the 10-year bonds retreated to 1.93%, the lowest over the past five years, from 1.98% in November's auction. The EFSF is looking forward to gathering as much as 3 billion euros by auctioning three-year bills to finance bailouts for debt-mired euro nations Ireland and Portugal, where rating agencies are threatening of a possible downgrade of the facility. Still, there is high uncertainty that euro area debt crisis may thwart global recovery; data from the euro area showed that PMI composite signaled a contraction in manufacturing and services sectors for the fourth consecutive month to 48.3. The main focus in the market this week is on manufacturing and services data from major economies, where the main highlight of the week is the awaited non-farm payrolls report due on Friday. Later in the day, U.S. factory orders will probably show 2.0% rise in November from the prior 0.4% drop. Now, the shiny metal is continuing on the same track that it ended 2011 with where it 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 rebounded against majors as worries encouraged demand on the dollar as a refuge. The dollar index, which tracks the greenback's movements versus six major currencies, is currently hovering around 80.15 compared with the day's opening of 79.63. Spot gold is currently traded higher around $1596.84 an ounce, after recording a high $1613.54 and a low of $1592.63. The shiny metal failed to remain the critical physiological level of $1600. Crude oil also slipped to trade around $102.65 a barrel compared with the day's opening of $102.97.
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