Fundamentals

Gold prices fell once again today as the dollar gained strongly against the euro and as crude prices decreased which eased indirectly the decline of the yellow metal prices. The precious metal recorded $881.70 an ounce and is no longer appealing to investors as it lost its role of a hedge against inflation and as an alternative asset.

On the other hand, crude prices declined recording $136.99 a barrel, as oil is no longer a hedge against a falling dollar having today a strengthened rising green currency that reduced completely the appeal of oil in the market as investors are targeting high returns.

The US dollar advanced against the euro and yen and consequently became much stronger since that some data was released showing that retail sales gained in the US market which will support the Federal Reserve to raise interest rates. This gaining dollar played a major role in the market as it made investments swap from the gold and the oil to the green currency.