The close of Wall Street on Monday saw stocks edging slightly lower, ending a six-day run that had been most welcome in this volatile summer. Closing prices were hardly surprising after disappointing reports about Japanese growth which came from the country on Monday. Stocks had remained on an upswing based on investors’ expectations that central banks would help ameliorate the continuing European debt crisis. Interestingly, it is precisely this optimism that caused gold prices to rise during Tuesday’s Asian session, erasing previous losses. Gold futures seemed likely to test the support of USD 1,607.85 per troy ounce and a resistance level of USD 1,620.85.
Asian stocks also gained during Tuesday’s session , with the MSCI Asia Pacific Index (MXAP) gaining 0.2 percent to 120.41 by 9:45am Tokyo time. The Nikkei 225 Stock Average also increased, by 0.6 percent. It remains to be seen whether the European market will follow suit, as Monday saw the worst day in the European markets for the past 7 sessions, the result not only of waning optimism in the economic recovery process, but also from the summer’s thin trading volume.