Gold was relatively higher in trade today on the back of dismal earnings and economic reports coming out of Asia and Europe as traders unwound from risky asset classes and took positions in risk-free assets like gold and bonds. Most traders believe that gold in the near term can trade above the $1300 level which is a huge positive. Gold had witnessed some strong selling pressure after both the World Bank and investment bank Goldman Sachs cut their price forecasts for the precious metal, late last week which was seen as a huge negative. Though, gold bulls continue to believe that the pick up of volatility in equity markets across the globe would be a huge positive for the precious metal in the near term.
The Euro came under selling pressure in the trading session and has given up most of its gains from the early Asian morning session. The Euro saw a rebound in the overnight session but bears have used the rebound as a selling opportunity. Also reports about rating agency Moody’s citing the election results from Greece as a “credit negative” event is putting pressure on the single-area currency. Most traders and analysts believe that the long term trend for the Euro remains down at the current moment as the European Central bank’s quantitative easing program would put more pressure on the Euro.
Bond Yields across the board were lower in the European trading session which is indicative of the flight to safety route adopted by traders and investors in the near term. Many believe that bond yields across Europe, especially of countries like Germany would remain lower in the near term which is being seen as a huge positive for Bond bulls. Greek bonds have been climbing right from the time the election results were announced
