Markets are jittery and trends are hard to determine as commodities, currencies and all equities fluctuate up and down. Gold found the support it needed from the record high oil prices and weak dollar as it boosted the appeal for the safe haven as an alternative investment. Yet we saw last week the metal declining to a two week low as the dollar was rebounding against majors. Today, prices remain reversing from last week's low as investor speculations still show that the US economy is stagnating. A survey showed that gold may decline further for a second straight week as many expect the Feds to begin hiking rates this year to bolster the economy. The yellow metal is currently trading at the $882.00 per ounce level as it holds a neutral trend which might be witnessed for most of the day.

What was once seen as the great supporter to gold might now witness a dark future as prices are expected to decline despite the fact that hurricane season has officially started as Hurricane Arthur disrupted Mexican refineries during the weekend. Today's trading has no specific trend as prices are moving sideways at the $126.00 per barrel level. But it has been finally admitted in the markets the reason behind the great incline in prices is due to hedge fund managers and speculators moving the market. OPEC has been saying this for a long time now yet they were pressured to boost production at a time where they saw that supply was sufficient to meet demand.

But it seems that all eyes are on the Federal currency as many believe that its time for the Feds to hike rates and help the economy climb out of a possible stagflation. The outlook of the monetary policy isn't clear and statements from Fed Chairman Mr. Ben Bernanke later this week might trigger investor actions as it could be a hint for what they have been waiting for. Markets now remain confused and mixed as every piece of information released from the US will be crucial at a critical time like this. We see slight unwinding in the markets now as investors shifted to the less risky assets as they're appetites shrink yet once again, gold is still holding at its current levels!!