European headline shares opened firmly this morning mimicking some of the gains observed during trading yesterday. Volumes are also slowly returning to normality as the summer holidays draw to an end and the US markets reopen after a long weekend.
However, investors are unlikely to see the same level of optimism observed during the previous day’s trading as many traders are displaying profit-taking behaviours amidst the euphoric finish yesterday.
Gold is on the retreat again today as investors shied away from the safe haven asset as a result of a delay in possible military intervention in Syria as well as a host of strong economic data. Both China and the UK have reported better-than-expected manufacturing PMI data over the last couple of days. In addition, since Gold has jumped around 21% since June, many investors seem to pondering whether the current global economic risks are severe enough to justify further pushing the value of the precious metal.