With the new trading week, gold started with modest gains heading to the upside replenishing some of Friday's losses on the back of a weaker dollar which increased its appeal.

The market sentiment surely has improved where we can see today the Asian markets benchmark index rising to a four-week high and as well the cost of protecting bonds against default decline which is a clear tribute to eased fears.

Investors exaggerated jitters came to rest when Friday's infamous and anticipated jobs report reported a less sever deterioration in the labor market, shrugging the expectations for a double dip recession. U.S private employers added more than expected jobs with upside revision to previous reports which uplifted the market and also pressured gold to end lower on Friday.

Today the dollar's decline was supportive to the precious yellow which traded marginally higher hovering around $1249.70 above opening levels of $1248.20 recording so far a high of $1250.98 after setting the low of $1246.40.

The journey for the precious metal might be wrapped with volatility this week especially as the opening sentiment is optimistic today with expected positive data this week depriving gold of the strong support and haven demand; yet on the other hand we expect the dollar to extend the decline and be the buffer for gold.

Recovery expectations are still not going to suppress gold fully as we believe in the bullishness is intact and the combined haven demand and hedge against inflation and seasonal rise in physical demand this period will support the metal.

Yet we can see that the loss of have demand altered the path for gold when compared to the industrial metals, especially silver. Platinum, Palladium and Silver all ended with gains last Friday and the latter struck the highest since March 19 2008 adding 4.2% the previous week. The fears eased about the prospects of a slowing recovery and industrial metals gained on that notion.

Today, silver is still trading higher this morning hovering around$19.80 rising from opening levels recording so far the high of $19.91 and the low of $19.75 while Platinum and Palladium were little changed hovering around Friday's closing currently around $1561.10 and $528.60 respectively.

Ecpulse

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