IBT: Gold rises on political tnesions and debt woes
Gold rises on political tnesions and debt woes
Precious-Gold rebounded today as the growing tensions between the two Koreas and debt concerns in the euro zone increased the appeal of the commodity as a safe haven.
Spot gold is trading at $1366.69 an ounce, recording a high of $1367.34 and a low of $1353.12.
The shiny metal took advantage of the escalations between North and South Korea after they exchanged fire last week. South Korea refused talks and said it started maneuvers while North Korea mentioned it will have "merciless" response to any attack.
On the other hand, Ireland will receive 85 billion euros to restructure its banking system and lower its huge debt. Details showed that the aid package would be financed through 45 billion euros from European governments, 22.5 billion euros from the IMF and 17.5 billion euros from Ireland's cash reserves and national pension fund. In addition, UK will provide its neighbor with 3.8 billion euros.
Yet, the news may not lower tensions in markets that pushed the euro to two-month low versus the dollar as other highly indebted nations, more specifically Portugal and Spain, may ask for a rescue package soon.
The news pushed the euro to a low of 1.3179 against the greenback then it rebounded to 10.3280 where it is currently trading.
The US dollar, on the other hand, is currently traded at 80.14 where it is finding support at that level while the highest point was recorded at 80.64 and lowest was at 80.04, according to the dollar index.
In fact, the dollar's strong rebound witnessed this month minimized gold's gains especially with the decline in physical demand after the end of the festival season in India, the largest buyer of the yellow metal.
On November 26, gold shed $10.90 or 0.79% an ounce to close at $1363.22 an ounce, while gold price was setin London at $1355.00 per ounce declining from $1366.50 during the AM fixing.
Among other precious metals, platinum rose to $1654.50 from the day's opening at $1644.00, palladium edged up to $685.00 from $671.70, and silver surged to $27.10 from $26.64, as of 08:15 GMT.
