The US market is still facing turbulences, and more falls to the US dollar is yet to come, plus their economy's collapse is potential; stuck in the middle between stagflation and recession, and each case is worse than the other. But seriously if the situation gets worse they would fall into stagflation, which is considered to be the worst disease any economy might face, were they will get caught in the middle between high inflation and the rapid drop in growth levels. what came out as a surprise for us is the new all time highs the Euro recorded at 1.54 levels in the early Asian session, were people started to fear the results of the non-farm payroll, as the most optimistic analysts believe that its might rise just 70 thousand jobs, yet the pessimistic believe that it will drop 110 thousand jobs, to affect the unemployment rate pushing it up ounce again up to 5.0% from the previous 4.9%.
In the perfect scenario the gold had to breach all time highs yesterday because theoretically it moves in a proportional relationship with the 15 nation currency, but the profit taking transaction that occurred before the non-farm payrolls occupied investors' mind preventing the shiny metal from retaining those levels. Gold ingots are trading today at $978.35 per ounce slightly higher than yesterday's closing level at $977.40 per ounce, so as we are just waiting for today's US Fundamentals to see were will the shiny metal reaches, or whether it will breach the $1000.0 per ounce the long set psychological barrier.
With the other commodity that shares a proportional relationship with the ingots which is the black gold Crude Oil; oil prices yesterday kept hovering below the $106 per barrel, by reaching the highest of $105.97 per barrel, showing that investors' are still favoring the oil as hedging transaction from the high inflationary pressures all around the world. Today we all expect that the shiny metal and black gold would breach up all expectation to reach all time highs, but let's hope that the US data would turn out as our expectations.
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