EUR/USD
EUR/USD hit 1.3122 in the course of European trade, highest since the beginning of the week; consolidating at 1.3105. The pair was expected to catch support at 1.3017. Post-election Italy auctioned EUR6.5 billion on Wednesday following elections which concluded with clear winner, offering the possibility of a protracted time of political uncertainty and possibly reintroducing the eurozone crisis. The yield on Italian 10-year bonds increased to 4.83 per cent, up from 4.17 per cent at a parallel auction previously, whereas the yield on five-year bonds climbed to 3.59 per cent.
GOLD
Gold drew back on Wednesday, following an increase of more than 1 per cent in the earlier period, as stockholders cashed in some advances in advance of a second day of announcements by FED Chairman Ben Bernanke and a series of U.S. financial data. The precious metal displayed its largest one-day increase in three months following Bernanke’s reassurances on the Fed’s pledge to relax monetary policies, polishing bullion’s charm as a hedge against price increases. It fought to maintain the gains, as traders continued to be worried over gold’s long-term projections, knowing prospects for a further recovery in the economic rotation could favour higher-risk commodities