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Gold can't seem to catch its breath as it is sinking further on speculations that the Feds will stop the series of interest rate cuts. The metal is trading near a three month low after it dipped just below the $870 level for the first time since Jan 22. An alternative investment? I don't think so! Not with what is happening in the markets lately as investors become more optimistic about the U.S. economy. With the combined forces of dollar strength and profit-taking, downside pressures are piling up on the shiny metal as they will soon weigh on commodities markets as a whole. Trading is currently at $874.00s per ounce level as it remains neutral.

Black gold was the same as it couldn't gain yesterday dropping as low as the $115.00 per barrel level marking the largest decline in four weeks. Contracts fell more than $3 per barrel yesterday as the dollar strength weighed on prices alongside the Forties network restarting operations which had previously spiked worries concerning supply in the U.K. Still to come is the EIA report to be released later today will probably show that crude inventories rose adding more pressure to drag prices down further.

Nothing has changed concerning the federal currency as now all market players are waiting for the FOMC meeting later tonight where expectations show that the Feds will cut their benchmark for the seventh time by 25 basis points taking the overall interest rate down to 2%. But that isn't really what is on their mind

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