Break the longest string of gold daily gains since the beginning of the year, and in light of the dollar to compensate for its losses recorded earlier and incurred by weak investor confidence in the U.S. economy.The decline in gold for the highest level in two weeks after that resulted in a sharp decline in business activity in the states of the Midwest U.S. as well as data showed the entry of the Spanish economy in recession, the decline in investor appetite for risk and prompted them to resort to the yen as a safe haven, which led him to rise on a large scale in front of the Australian dollar . The decline in the price of gold in the spot market 0.1% to 1661.59 dollars an ounce. The prices have risen for the fifth straight session until the first Monday. And reduced holidays in Europe of trading volumes on the futures contracts for gold. Gold prices ended trading on April fell for the third consecutive month after data showed an improvement in the U.S. economy.
In currency markets, sterling fell to its lowest level in the session against the dollar and the euro came after the PMI manufacturing British below expectations. Sterling fell about 0.2 percent from the previous close, its lowest level in the session at 1.6193 dollars, compared with around 1.6214 dollars before the data. The euro rose to 81.985 pence, its highest level in about a week, up about 0.5% from the previous close and closer to the high level that his record on 25 April at 82.22 pence. Before the data about EUR 81.80 pence. Euro – Franc
The euro and franc
The euro and the Swiss franc to the highest level in four weeks against the dollar, which vulnerable witnesses in general in the thin trade. The euro rose 0.2% to 1.3274 dollars on any trading platform. Me. S to its highest level since early April. The dollar fell 0.2% against the Swiss franc also to 0.90500 francs. The dollar index fell to 78.622, its lowest level since February 29. Australian dollar and grabbed the interest in thin trade due to the Labor Day holiday after it cut the central Australian interest rate.
And reduce the Reserve Bank of Australia (Central) after a meeting of its Board of Directors monthly basic interest rate by half a percentage point, up to 3.75%, down from 4.25%. The lower the interest rate to reflect the slowing economy and declining inflation pressures and fears of the repercussions of the recession return to some parts of Europe on the Australian economy. This is the first time in more than three years, which reduces the Reserve Bank of Australia interest rate by more than a quarter of a percentage point once. Gillen said Stevens, Governor of the Central Bank of Australia’s growth in the global economy will remain below the desired level during the current year, pointing out that Europe still is the main concern. He added that the functions of banks and restore the European sovereign debt to track the long term and improve the growth prospects for Europe remain major tasks, and that Europe will remain a potential source of shocks for some time. Stephens said that the economy is weak, despite the continued high commodity prices, while the high value of the Australian dollar putting pressure on local products which become less competitive in foreign markets.