Gold fluctuated before the awaited meeting between leaders of the largest euro area economies to conduct talks before the EU summit at the end of the current month. The two leaders will discuss putting a strong and decisive plan to continue the efforts done on December 9 summit that aimed at creating a “fiscal compact” for the euro region. The meeting may also include discussions about the expansion of the 500-billion euro aid package, which was initially rejected by German officials, and the possibility of launching a financial-transaction tax. However, the euro may become once again under pressure where the European Central Bank (ECB) data released on Monday showed that European banks have used all-time high on Friday, reflecting the concerns in markets which prompted banks to lend from the ECB instead of depending on each other. This week, eyes will be on Spain and Italy, where the former plans to sell bonds maturing in 2015 and 2016, while the later is expected to auction 3-, 5- and 15- year bills, where both countries may reach an aggregate bond selling of 262 billion euros in the first quarter, according to Deutsche Bank AG forecasts. Last week, the gold took a boost from the oil's advance to eight month high on the back of the tensions in Iran after the approval of the EU to impose a ban on Iran's oil imports. Yet, in the coming period, the yellow metal is expected to get direction from the dollar and oil movements. Now, the dollar is showing a drop after the gains achieved last week; the dollar index, which tracks the greenback's movements versus six major currencies, slipped to a low of 81.11 compared with the day's opening of 81.34. On the other hand, crude oil is traded high near eight-month high around $101.60 a barrel, showing some bearishness, compared with the day's opening of $101.92. Spot gold is currently traded slightly higher around $1617.70 an ounce, after recording a high $1623.56 and a low of $1604.86. The shiny metal still may get further support from the critical physiological level of $1600.
|
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