Gold resumes advance on global outlook concerns, geopolitical tensions . . . . . . . . . . . . Gold soared for a third straight session as worries about global growth outlook and geopolitical tensions spurred safety demand on the metal. Data released yesterday showed that U.S. retail sales stalled in July, following a 0.2 percent increase in June, to raise concerns recovery is losing steam. Today, worries heightened after a report showing Europe’s biggest economy contracted 0.2 percent in the second quarter, more than analysts’ forecasts of a 0.1 percent drop. The first quarter reading was revised down to 0.7 percent growth from the previous 0.8 percent expansion. As of 09:00 GMT, eyes will focus on euro area second quarter growth figures, where economists predict an ease in expansion to 0.1 percent from 0.2 percent in the previous three months. Regarding geopolitical tensions, still there are worries in Ukraine after a Russian convoy moved to Eastern borders carrying humanitarian aids to rebels, as government in Kiev expect this could morph into a military action. So far, the shiny metal has gained more than 9.18 percent this year from the geopolitical tensions in Ukraine and Middle East, taking advantage of its safe haven merit. The U.S. dollar rose for a fourth day versus a basket of major currencies to trade near 11-month high. The dollar index is meanwhile hovering around 81.68 after touching a high of 81.75. Gold resumed is currently trading around $1315.50, near its highest level in three weeks, after hitting a high of $1316.96 and a low of $1310.52. Crude oil for October’s delivery slipped to trade around $96.23 after hitting a bottom of $96.20. #egyptyard
Posted on: Thu, 14 Aug 2014 07:51:57 +0000
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