Dhaka, Bangladesh (BBN) – Gold traded choppy within US$20 range during the end of last week as bullion investors raised cash to cover margin calls credit rating downgrades of Spain and Italy.
At the beginning of the week gold prices rose more than 2.0 percent, reversing a decline in the previous session after the leaders of France and Germany promised on Monday to unveil new steps by the end of the month to resolve the euro zone’s debt crisis, a weekly review report said.
However gold dropped on Tuesday, giving up some of the previous day’s gains as bullion investors sold on uncertainty ahead of a key vote in Slovakia on expanding the euro zone rescue fund.
Gold rallied on Wednesday, in tandem with riskier assets, as the dollar fell on hopes the euro zone debt crisis will be contained after Slovakian parties agreed to boost the region’s bailout fund. Prices held steady on Thursday morning, as optimism for a solution to the euro zone crisis underpinned sentiment.
Brent Crude oil prices ended last week by edging higher from Thursday after the encouraging U.S. jobs data suggested the United States may avoid a recession. Brent crude for November edged up 15 cents to settle at US$ 105.88 a barrel.
Oil rose further on Monday, fueled by optimism that demand in the world’s largest consumer would hold, Brent rose 0.2 percent to US$ 106.10 a barrel. Oil continued its rally on Tuesday on news of an alleged Iranian plot to assassinate Saudi Arabia’s ambassador in the United State.
Moreover, as Slovakian lawmakers appeared ready to approve an EU plan to strengthen the euro zone rescue fund the next day, Brent crude rose-posting an 11.6 percent gain over six sessions, snapping a five-session streak of higher closes for the week on Wednesday.
BBN/SSR/AD-14Oct11-8:47 pm (BST)