Gold trading was mostly flat today since opening the Asian session. After Friday’s huge drop it remained stable, even gaining over 10 pips in the US session reaching a high of $1,504.33 but then losing all gains to hover around $1490 support levels.
“Those problems around the euro zone are still there, and they might reemerge even this week,” said Adam Klopfenstein, senior market strategist of MF Global’s Lind-Waldock unit.
Euro zone finance ministers meeting in Brussels are expected to push for a bailout for Portugal and come to an agreement that Greece must reach fiscal and privatization targets if it wants new emergency funding next year.
Losses in gold were limited as the dollar fell 1 percent against the Euro, which was boosted by sovereign demand after last week’s sharp sell-off. Meanwhile, as the day progressed and concerns eased over the arrest of IMF Chief Strauss-Kahn, optimism grew that the European Union meeting would go as planned to support Greece and avert a restructuring of the country’s debt.
Silver declined today on news that Eastman Kodak said that a majority of the silver contained within its color film and paper products was removed during processing, allowing the company to use a variable pricing strategy. Silver is a key raw material for Kodak and with silver prices rising recently, it was no longer cost effective for the company.
In the US session, silver dropped from a high of 35.27 down to 33.62 by 3pm CET.