Fundamentals

Today, the precious metal is still calmly declining reaching a high of $902.55 an ounce and therefore losing about $5.75 an ounce as it reached a high of $908.30 yesterday yet trading is still limited as there is no specific trend seen in the markets since yesterday. This decrease in its price witnessed yesterday is due to the gaining dollar, knowing that these two have an inverse relation; consequently the yellow safe asset is not as attractable as before to the investors.

On the other hand, oil remains high in its value despite an exceptionally light decrease in its price recording a high of $130.84 a barrel today from $131.58 a barrel yesterday. This price is still relatively high as threats of new attacks on oil installations are expected in Nigeria; the biggest African oil producer and a major U.S supplier as well.

Now, the US dollar gained today against the euro and the yen since that the Federal Reserve Bank of Dallas proclaimed that the central bank will raise interest rates. Not forgetting the durable good orders of the US that was released yesterday with a positive data which spread some hope in the market. Moreover, as this green currency is gaining, it pulled investors away from gold and oil towards it.