Fundamentals

A new financial scene starts with this new week as the dollar rose whereas gold and oil prices lightly slipped but remains high.

The precious yellow metal price is decreasing and is actually floating around $885 an ounce, but this decline in its price is not very deep as its price is still considered high. Now, the main reason behind this light fall of the gold is the dollar that has gained power and strengthened today, which made it hard for the gold to continue on rising due to their inverse relation and the fact that more investors now are attracted to the green currency rather than the yellow shiny metal.

Oil found itself in a close scenario to what gold was in, having its price slightly decline due to the strengthen dollar that is pushing investors away from the oil since it's no longer looked at as a hedge against inflation having a dollar that is rising. But still oil price remains high and strong as it's still above the record price of $125 due to the oil supply that is limited always due to the same geopolitical factors, having militant attacks targeting oil company infrastructure in Nigeria which is the largest oil producer country in Africa.

As we could see, the dollar strengthen today and gained against major currencies; it has rose against the yen for the first time in six days reaching 103.13 yen from 102.82 yen last Friday as market expectations drove investors to buy and put in more in the green currency. Of course this made investments swap from commodities to the resurrected dollar and made oil and gold prices slightly decline.