Gold and Silver Flat in Asian Trading

Most metals and energy commodities closed with strong gains in international market. Gold closed slightly higher, recovering a part from the previous session’s slide, as better performance in equity markets and underlying uncertainties surrounding the US fiscal crisis increased bullion’s investment appeal. Gold rose 0.04% for the first time in four days on speculation that the Federal Reserve will buy more debt to boost the U.S. economy. However, silver fell 0.16%.
Public bickering between Democrats and Republicans made the headlines of global news services. After President Obama told investors earlier in the week, that a deal was imminent and that he was ready to sign the new legislation as soon as it reached his desk.
Gold holdings  of SPDR gold trust, the largest ETF backed by the precious metal, declined to 1,347.02 tons, as on Nov 28. Silver holdings of ishares silver trust, the largest ETF backed by the metal, declined to 9,780.44 tons, as on Nov. 29.
The dollar index, which measures the greenback against a basket of six rival currencies, stood at 80.215, above the day’s low of 80.021, but still down from 80.262 in late US trading session on Wednesday.
This morning gold prices have come of the highest level of the session as euro has come under pressure after concern on German economy arrived in the market. Other than this, US economic releases could scale back expectations for further easing from the Federal Reserve, boosting the dollar and weighing on the precious metal. Asian markets are trading in a higher side with optimism of increasing economic sentiment in China and Japan.
Looking towards later today traders can expect gold prices to continue its upside move whereas prices may come under pressure during European session. German retail sales are likely to decline further which will weigh on the euro to pressurize on these metal prices. Likewise, US personal data are expected to an improved picture as GDP number for third quarter climbed up. Thus, higher dollar index during US session may weigh on prices.
This morning, Japan released their monthly data dump; Japanese industrial production has improved and supported gains in Asian equities, which may continue to support gains in Silver. Also growing Chinese business sentiments and growing manufacturing may continue to support demand for the metal. Even record mining and higher costs failed to dent and with improving sentiments buying at dips should be initiated. Silver outpaced gold in yesterday’s session and is trading at 34.278 flat this morning

Article Source: http://www.fxempire.com/