Article of the week on Precious Metals and Hopes about Greece Bailout
The shiny metal rose on expectations that Greece is coming soon to get the next aid tranche, after Chancellor Angela Merkel said on Wednesday that” an agreement to release aid to Athens was still possible next Monday”.
On the other hand, disappointing European economic news contrasts with better news coming out of China, increased hopes there could be some improvement in the fourth quarter.
Until now, the metal’s rally is limited as it approaches trough resistance around $1750 levels which it has slipped from last week, where it gained 1%, so far, this week.
Meanwhile, gold is now trading around $1746 an ounce after hitting a high of $1749.26 and a low of $1728.85, and for today is expected to move within a range trading between the key support level of $1700. and the key resistance level of $1755.00.
Furthermore, gold also benefited from the drop in the U.S. dollar which has recorded its biggest weekly decline since early October.
As The dollar index decreased versus a basket of major currencies, and today it fells for the second day to reach a low of 80.55.
Conversely, oil did not take advantage this week from the dollar’s drop and the rising tensions between Israel and Gaza, as normally it should rise, however it slipped to trade around $87.12 a barrel.
Article of
the week on Precious Metals and Hopes about Greece Bailout
The
weaker dollar urged demand for the precious metal as an alternative
investment.
Today and during this week, the
Precious-Gold
advanced, heading for a weekly gain, but it remains trading below $1755, ahead
of the Europe finance ministers` meeting on Greece next week. And market may be
expecting an improved deal for Greece.The shiny metal rose on expectations that Greece is coming soon to get the next aid tranche, after Chancellor Angela Merkel said on Wednesday that” an agreement to release aid to Athens was still possible next Monday”.
On the other hand, disappointing European economic news contrasts with better news coming out of China, increased hopes there could be some improvement in the fourth quarter.
Until now, the metal’s rally is limited as it approaches trough resistance around $1750 levels which it has slipped from last week, where it gained 1%, so far, this week.
Meanwhile, gold is now trading around $1746 an ounce after hitting a high of $1749.26 and a low of $1728.85, and for today is expected to move within a range trading between the key support level of $1700. and the key resistance level of $1755.00.
Furthermore, gold also benefited from the drop in the U.S. dollar which has recorded its biggest weekly decline since early October.
As The dollar index decreased versus a basket of major currencies, and today it fells for the second day to reach a low of 80.55.
Conversely, oil did not take advantage this week from the dollar’s drop and the rising tensions between Israel and Gaza, as normally it should rise, however it slipped to trade around $87.12 a barrel.
Upcoming important data and events will include the EU
Summit decisions, the ECB President's speech at the 22nd European Banking
Congress on today, the Euro's agreement to sign or not on Greek's aid on
November 26th and the data of the October U.S. durable goods order
on November 27th .
As a conclusion: It has been a bull market in gold for this week,
as we can see.
