Precious-Gold dropped
on Tuesday trading on renewed worries regarding the so-called U.S. fiscal cliff
as officials did not reach a solution yet, thereby threatening both U.S. and
global recovery.
The shiny metal
slipped for a third straight session to trade around $1704.66 an ounce, where
it found support at $1701.66, which represents the Simple Moving Average (SMA)
100 level on the daily charts, after it fell from a high of $1717.35.
The trading range for
today is expected among the key support at $1690.00 and the key resistance now
at $1730.00.
Still, the main
director of market sentiment is the U.S. fiscal cliff; it threatens the world`s
biggest economy of falling back into recession
if $607 billion of tax hikes and spending cuts start in January.
Yesterday, House of
Republicans suggested a $2.2 trillion deficit-cutting plan, yet White House
Communications Director Dan Pfeiffer replied that it “does not meet the test of
balance.”
With the sluggish
progress seen in U.S. budget talks the tensions are heightening and weigh on shares
and commodities.
Gold is now moving
with the U.S dollar as they both face downside pressure of the little progress
in the budget
negotiations.
The dollar index
plummeted today to record a low of 79.80 after opening today`s trading at
79.89.
On the other hand,
the euro is resuming its upside direction to six-week high versus the greenback
after Greece said yesterday it would spend 10 billion euros to buy-back bonds
via a modified Dutch auction.
Euro area finance
ministers expressed their confidence that Greece will handle a successful bond
buyback on Dec. 7, lifitng up expectations the debt crisis is abating.
Later in the day,
European Union finance ministers will meet in Brussels to continue their
pursuit to ease the three-year-old debt crisis.
Crude oil for
January`s delivery inched down to $88.68 per barrel compared with the day`s
opening level of $88.90.
Among other precious
metals, silver retreated to $33.28 from the day`s opening of $33.32, platinum
ticked down to $1592.75 from $1594.25, and palladium inched up to $678.60 from
$678.40.
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