Gold cuts some of the gains ahead of the EU finance ministers’ meeting

Gold gained big time in the past session as uncertainty dominated the market, while jitters and fears are still evident in Europe; however, the euro-area finance ministers in their meeting in Brussels yesterday unveiled some measures and steps to tackle the debt crisis and implement the plan approved on the October 26 summit, which eased demand for gold as European lawmakers are taking steps to ease renewed fears and rising-debt concerns.

Gold is currently trading around $1789.13 per ounce after opening the session at $1794.50, yet the metal fluctuated to record the highest at $1795.07 and the lowest at $1783.62 per ounce, yet we expect gold to rebound in case the Italian Parliament approved the budget plan and EU finance ministers were able to quell jitters and provide steps to tackle the two-year old debt crisis.

Jean-Claude Junker explained that finance ministers discussed several ways to increase the International Monetary Fund resources to widen lending capacity and support indebted euro-area nations. In addition, Junker said that ministers consider a possible increase in the leveraging potential of the European Financial Stability Facility.

For Greece, the euro zone finance ministers demanded Greece to provide a written acceptance for the bailout deal in order to get the 8-billion euros as soon as possible, which eased jitters that Greece will not face bankruptcy in December and will get financial aid; however, Greece on the other hand must show commitment and act firmly to apply the austerity measures.

For Italy, finance ministers welcomed the steps taken by Italy to cut its huge deficit; however all eyes will be focused on the vote today, where Berlusconi is to be put under test as he seems to have lost his majority in the parliament.

We expect metals to fluctuate heavily today, with lack of heavy fundamentals from major economies, where Europe remains the main focus in the market, as investors are waiting for the next Prime Minister in Greece, while eyes will be focused on the Italian vote on the budget plan, awaiting results from the EU finance chiefs meeting today.

Silver opened the session today at $34.93 per ounce, and recorded the highest at $34.96 and the lowest at $34.48 and is trading in the moment around $34.70 per ounce, cutting some of the gains recorded in the past session.

Platinum opened the session today at $1654.75 per ounce, and reached a high of $1658.50 and a low of $1644.25 per ounce, and is currently hovering around $1657.75 per ounce.