Gold Hovers Around $1680, Platinum Steadies Near 3-Month High

Precious-Gold hovered around $1680 an ounce on Thursday treading amid global growth and concerns and bets for further monetary easing by major central banks.

Gold is currently trading around $1680 an ounce, after opening at $1680.21, where it may continue its surge as it is currently trading above strong resistance at $1671, which constitutes SMA 50 level on the weekly charts.

The trading range for today is expected among the key support at $1625.00 and key resistance now at $1695.00.

The yellow metal failed to get directions amid global growth worries after the World Bank said on Tuesday the global economy will expand 2.4 percent this year, compared with June forecast of 3 percent, raising concerns global economies would suffer in 2013 to find recovery path. On the other hand, worries regarding the U.S. debt ceiling remained predominant.

Gold is gaining some support as an inflation hedge as comments from the Fed`s Chairman at the beginning of the week suggested the Fed is likely to continue its stimulus to bolster the economy, while the BoJ is highly predicted to ease monetary policy further in the coming meeting.

Gold`s appeal increases as central banks are easing their monetary stance, noting that the yellow metal recorded its 12th consecutive yearly rise in 2012 on central bank`s stimuli and gained 70% as the Fed bought $2.3 trillion of debt in two rounds from December 2008 through June 2011.

In the FX market, the dollar inched up today to continue its advance against a basket of major currencies for a third straight session, as indicated by the dollar index which is currently hovering around 79.80.

Crude oil for February`s delivery retreated to trade around $94.01 a barrel from the day`s opening of $94.14.

Among other precious metals, sliver edged up to $31.37 from the day`s opening of $31.29, platinum stood at $1678.00, and palladium inched down to $719.51 from $719.30. This week, platinum jumped to three-months high on supply concerns after Anglo American Platinum, the world`s biggest producer of the metal, said it may sell or shut its Union mine.

Later in the day, the main attention is expected to be on debt auctions in Spain and France which will be followed by a parade of high-relevance U.S. housing and labor-market data.