Gold prices volatile in early trade after trying to test the areas of resistance $ 1600 USD/ Ounce, amid moves of corrective overcome the movements of gold in the time, which received the support of the concerns about the political situation in Italy’s, third-largest economy in the euro zone which has strengthened the demand for metal yellow precious as a safe haven, but not in great form.
Confirmed fears about the election results ,Italian after data showed initial offering center-left party in Parliament, but the concerns of investors in global markets lies in the inability of any of the alliances to form a majority in the Senate, which hampers decision-making related to policies of austerity which increase concerns about the worsening sovereign debt crisis.
Gold prices recorded in early trading levels of $ 1598.24 USD/ Ounce before easing hour writing to levels $ 1590.83 per ounce.
Negative pressure on the euro contributed to the decline to the lowest level in seven weeks at 1.3017 levels which support from higher U.S. dollar to its highest level in six months as it appears on the Dollar Index, recording 81.91 which reduced the height of gold during the early trading.
Unlike concerned about elections Italian, the sights have turned to the testimony of Mr. Ben Bernanke – Chairman of the Federal Reserve Bank – before the Banking Committee of the U.S. Senate and then may turn directed the Fed about the stimulus programs during the coming period, especially after what minutes showed Bank meeting last that there are directions about the withdrawal or reduction of these programs which prompted the slope gold prices during the previous week, at a time when these programs are the main factor behind the rise in gold prices as a hedge against inflation.