The U.S. dollar plummeted throughout yesterday's trading session, reaching its lowest against the Japanese yen in nearly 14 years, at a time it fell against a basket of foreign currencies. However, the major drop influenced gold to clearly rise and achieve its highest at 1193.40 yesterday, before closing at $1192.10 per ounce in New York by 0.05%. Today, gold continued to appreciate to record its highest at 1195.00 before slightly dropping.
The major spike gold witnessed was something no one could have dreamt of in previous years, but with the credit crisis and economic recession the global economy has been facing; pushed investors towards gold as a safe haven and when the global economy exited the recession, the dollar plunged in the a sharp bearish wave, thus increasing gold's attractiveness for investors, traders and central banks around the world; therefore causing it to spike.
Nonetheless, the rise in markets was not limited to gold only; stock indices rose yesterday alongside the spike in European stock indices. We also witnessed a rise in commodity indices; the S&P GSCI index gained by 12.88 points and closed at 514.74 points in NY, appreciating alongside altitudes, tools and energy commodities; whereas the RJ/CRB COMMODITY index gained by 6.15 points due to precious metals overall appreciation.
Meanwhile, platinum closed on highs yesterday by 1.80% at the same time as silver gained by 2.00%, where platinum closed at 1473.00 and silver at $18.84 per ounce for each of them. This spike precious metals witnessed was less than what gold faced, which signifies that there are non-speculative powers in the gold market where gold is requested as a safe haven.
Today at precisely 02:23 EST; precious metals witnessed a drop which arose due to existing fears within financial markets that China will take real steps to put a stop to the excessive growth in the economy, specifically the industrial sector, fearing a bubble forming in the economy.
Meanwhile, gold depreciated today trading at 1186.00; whereas silver traded at 18.60, which was the lowest witnessed between the three precious metals, assuring that the power behind these profit-taking operations are speculative; silver dropped by 1.27%. However, platinum fell by 0.41% to trade at 1467.00.
Chances of witnessing gold appreciate more prevails, in conjunction with the dollar sharp plummet; where these levels near the psychological block at $1200 per ounce, where we could see corrections and sharp trades if the medium term remains to the upside, especially since commodity and price bubbles have started to form around the world in correlation with crude stabilizing above $75; all of which benefit gold's rising glory.
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