One day after both the yellowish metal and the 17-nation monetary unit slipped on the markets, the performance of the two was nothing spectacular. Commentary by President Mario Draghi with the European Central Bank on Thursday, following policy makers’ monthly meetings in Brussels, pinched the euro.
But one day later the common currency was evening off against its cross-Atlantic rival. Despite losses for the world’s reserve currency, gold prices remained essentially even as well, a surprising occurrence since the U.S. dollar and the yellowish metal typically perform the inverse of one another.
But despite the lackluster performance as the middle month of the first quarter of 2013 begins, senior broker Kurt Pfafflin with Daniels Trading endorsed both gold and silver futures as this year’s top tradables on the commodity complex.
Reuters reports that bullion made a recovery from Thursday losses when the ECB president told a news conference that the institution he leads is inclined to keep monetary stimulus procedures in place.
“Investor risk appetite will keep gold in check … and trade will be very much euro-driven after Draghi’s comments,” analyst Eugene Weinberg with Commerzbank told Reuters on Friday. “Prices struggle to find the catalyst for a rally as there is still a general feeling that the euro zone crisis is tailing off, the global economy is recovering and demand for safe havens is not there.”
At 10:46 a.m. on Friday, gold futures edged down 0.05 percent, a 65-cent loss to $1,670.52 per troy ounce. At 10:36 a.m., silver futures rose 0.71 percent, a 22-cent lift to $31.62 per troy ounce.
The record price for gold futures is $1,923.70 per troy ounce; gold’s all-time high stands at $50.35 per troy ounce.
Inflationary pressures lack
The yellowish metal was suppressed by Europe, China and the U.S. not demonstrating inflationary pressure, analysts told Reuters while also pointing to additional markets.
“Inflation, the other driving factor for gold, is not seen as a threat for the time being, and investors look mostly at risky assets like equities or even more industrial metals like platinum and palladium, which are more in focus than gold at the moment,” the Commerzbank analyst told the news source.
China, one of the globe’s top consumers of the yellowish metal, demonstrated strong exports and imports last month, indicating the nation is bouncing back from rough patches it endured last year.
The nation hosts the globe’s second-largest economy and its festive Lunar New Year holiday kicks off this weekend.
Marriage season begins in subcontinent
Sustained purchases of bullion are likely to begin soon in another country that is a top consumer.
The Hindu reports retailers in India are sustaining high demand for gold in anticipation of people gifting it to the newly married.
That demand has helped the precious metal temper its losses
Gold also is finding demand from investors in search of safe storage for their wealth, The Hindu reports. That also was helping to reduce losses.
Shifting north from India, a precious memento has been unearthed in an Northeast Greece city, according to Fox News.
As city laborers in Thessalonika excavated a line for a subway tunnel they found a wreath of golden olive leaves. That marks the ninth wreath of its kind found during the past several years.
The artifact is rather Spartan with a collection of olive leaves on a gold band that encircles one’s head.
“It’s not common. It’s an extraordinary finding,” director Vasiliki Misailidou-Despotidou with the 16th Ephorate of Prehistoric and Classical Antiquities for Greece’s General Directorate of Antiquities told the news source told FoxNews.com this week. “It happens quite seldom.”
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