Gold is holding just under $1750 per ounce today, pulling off its two-week highs of near $1760 per ounce in the last week though the sentiments remain upbeat. The Euro is trading in a very thin range today as markets came to the grips of a mostly positive set of US labour market data on Friday and Italy announced a 30 billion euro ($40.2 billion) three-year austerity plan over the weekend.
Equities are trading broadly higher today as markets focus a meeting of French and German leaders later on in the day. The Euro dropped from highs above 1.3500 levels against the US dollar on Friday as trader continued to unwind their previous longs ahead of the nonfarm payrolls.
The Nonfarm payroll employment edged up by 120,000 jobs in November, and unemployment rate declined 0.4% to 8.6 percent, reported the Labor Department on Friday. The employment rate last month was the lowest since March 2009, during the depths of the recession, said the department. Unemployment peaked at 10.1% in October 2009, four months after the Great Recession ended.
However, the markets remained mired in the uncertainty pertaining to the Eurozone policy moves and the DOW dropped from its highs to close the day on flat note. Euro continued to slid lower amid these cues, giving up the gains recorded after the united central banking actions earlier in the week. A break under 1.3500 was followed by sustained sell off in the pair and the upbeat US employment data, much to the contrary of the shape risk assessment, failed to boost the Euro and the equities.
The trend seems to be steady for the Euro/USD pair today and the currencies have not moved much even as the equities gained modestly. The day has turned out to be a rather mixed one for the equities though as the Chinese and Indian shares are in red and commodities are not showing any movement. Euro is quoting at 1.3409 against the US dollar right now and could look to extend the latest pullback after nonfarm as the European market open and the official talks take central stage.
Last week, gold surged given the bouceback in equities and Euro. The yellow metal was also lifted on the world economic worries. Monetary policy in OECD countries should remain strongly accommodative given the weak economic outlook, meaning interest rates close to zero in most cases and further support from non-conventional measures, the Organisation for Economic Co-operation and Development (OECD) said on last Monday. The OECD stated in its latest economic outlook that, given the downside risks to growth, economies which had begun to tighten rates should reduce them.
The Nonfarm payroll employment edged up by 120,000 jobs in November, and unemployment rate declined 0.4% to 8.6 percent, reported the Labor Department on Friday. The employment rate last month was the lowest since March 2009, during the depths of the recession, said the department. Unemployment peaked at 10.1% in October 2009, four months after the Great Recession ended.
However, the markets remained mired in the uncertainty pertaining to the Eurozone policy moves and the DOW dropped from its highs to close the day on flat note. Euro continued to slid lower amid these cues, giving up the gains recorded after the united central banking actions earlier in the week. A break under 1.3500 was followed by sustained sell off in the pair and the upbeat US employment data, much to the contrary of the shape risk assessment, failed to boost the Euro and the equities.
The trend seems to be steady for the Euro/USD pair today and the currencies have not moved much even as the equities gained modestly. The day has turned out to be a rather mixed one for the equities though as the Chinese and Indian shares are in red and commodities are not showing any movement. Euro is quoting at 1.3409 against the US dollar right now and could look to extend the latest pullback after nonfarm as the European market open and the official talks take central stage.
Last week, gold surged given the bouceback in equities and Euro. The yellow metal was also lifted on the world economic worries. Monetary policy in OECD countries should remain strongly accommodative given the weak economic outlook, meaning interest rates close to zero in most cases and further support from non-conventional measures, the Organisation for Economic Co-operation and Development (OECD) said on last Monday. The OECD stated in its latest economic outlook that, given the downside risks to growth, economies which had begun to tighten rates should reduce them.
Base metals were trading sideways during the mid morning on Monday, 5th December, as investors remained cautious amidst French President Nicolas Sarkozy and German Chancellor Angela Merkel meeting to be tapped today that is expected to finalize a fiscal deal that imposes tough budgetary rules on the 17 euro-zone members and then convince all 27 EU leaders on Friday to back the plan and curtail the European debt crisis contagion.
Comex Copper future for most active March contract was trading at $3.579 a pound, edged down by 0.15% (1 cent). SHFE copper future for the most active February contract was trading at 58000 yuan per tonne, up 0.49% (280 yuan). Likewise at Mcx tips , Copper for delivery in February firmed by 0.23% or Rs 0.95 at Rs 408.9 per kg with its high at Rs 409.8 per kg and low at Rs 407.25 per kg.
The successful ratification of the rescue plan could lead to further financial aid from the ECB and IMF or the combination of both. But, the aid from IMF or ECB depends on the 17-euro nations agreement of tighter budgetary controls. Also, ahead of the meeting, Italian Prime Minister Mario Monti will present to parliament on Monday a 30-billion-euro package of austerity measures designed to shore up Italy's strained public finances.
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