Fundamentals

Today, gold saw an undersized change in its price reaching a high of $930.25 an ounce being supported by the strong increasing oil prices. But the gaining dollar is preventing the precious metal price to increase; having investors leaving the safe yellow asset to head to the green currency as the returns there are higher at the moment.

On the other hand, backing up gold, oil prices are increasing rising above $133 a barrel as new attacks took place in Nigeria, the biggest African oil producer, where militants attacked a Shell's crude-oil station. Consequently crude supply is limited facing a high international demand that is continuously rising especially in Asian countries and as a result the crude prices are climbing up.

The US dollar is gaining against other major currencies like the British pound and the Euro as pessimistic data was released on the currencies which made investors target the US dollar as they are feeling more secured. Plus the speculations that the Federal Reserve might end the series of interest-rate cuts, this will of course avoid gold prices to climb up due to the inverse relation between the dollar and the gold.