Gold Slides For A Second Day As Worries Over Greece Enhanced Demand
ICN.com | Nov 13, 2012 04:39AM ET
Precious gold fell for a second day on Tuesday, hit by strong resistance at $1735 an ounce, on worries in markets regarding Greece after Eurogroup finance ministers failed to reach an agreement over Greece's coming installment.
Concerns remained in markets as Greece continue to be the market's main focus as the eurogroup postponed the release of a 31.5 billion euros tranche of Greece's second bailout for next week at their extraordinary meeting on November 20 as they need time to discuss with the Troika's report on the Greek status.
The installment is massively needed to make the debt-ridden country avoid default when 5 billion euros of debt matures on Friday.
Additionally, the finance ministers agreed to grant Greece an extra two years to 2022 to lower its debt to the target of 120 percent of Gross Domestic Product, yet it reflected the friction between the EU and IMF as Christine Lagarde, the IMF chief, expressed her rejection to giving Greece another two years stating that “in our view, the appropriate timetable is 120 percent by 2020,” “we clearly have different views,” leaving the IMF's position unsettled.
Later in the day, German investor confidence is predicted to retreat to the lowest since June 2010 to reach 8.0 in November from 10.0 in October.
Worries in markets caused investors to resort to the dollar as a refuge which in turn weighed dollar-denominated commodities.
The shiny metal slipped today to trade around $1722.92 an ounce, after falling from tough resistance at $1735.00 levels on Monday.
So far, the day's high was seen at $1728.58 while the low was hit at $1721.37, where the trading range for today is expected among the key support at $1703.00 and key resistance now at $1745.00.
On the other hand, the dollar resumed its rally for a fifth consecutive session against a basket of major currencies, as depicted by the Dollar Index which rose to a high of 81.20 from an opening of 81.06, reminding that the breach of 80.80 last week, which represents the intersection of SMA 200 and SMA 100 on the daily charts, may help the dollar to continue its rise while becomes its key support this week.
Crude oil for December's delivery slipped tremendously on the daily basis to trade around $84.75 a barrel from the day's opening of $85.59.
Among other precious metals, sliver plunged to $32.11 from the day's opening of $32.22, platinum retreated to $1554.00 from $1555.40, and palladium inched up to $603.15 from $602.30.
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