Gold fell even more as its appeal as a hedge against inflation was no longer valid! Yesterday's U.S. data concerning the labor market was able to push the dollar against all majors specifically the Euro. Investors rushed to leave the commodities market and invest more in the dollar as they saw a bright outlook for the Federal currency. After being traded for quite some time in the overbought area, it was about time the bullion snap back to reality and return to normal levels. The four digit mark may be hard to see nowadays as the pressure to the downside on the metal has taken targets to as low as $850.00 per ounce. This downside momentum was just getting all the support it needed. Yesterday's massive drop took the shiny metal to trade near a three-week low as it is currently fluctuating within narrow ranges at the $886.00s per ounce level.

Black gold, was another victim to the strengthening dollar as it fell for the third straight day from its highest ever at $119.90 per barrel to the $115.00 per barrel levels. The Bonnie and Clyde of commodities, crude and gold, support one another and are in action at times where the dollar is sinking. It just seems now that investors are locking in on their profits and unwinding their positions which pretty much resulted in the fall of crude prices to as low as $114.25 per barrel yesterday.

The stronger greenback suggests that people are actually thinking that the steep cuts seen in the U.S. economy might actually be over and that the Feds might not have to lower the rates aggressively any longer. Now the thing is, market sentiment has been altered as many believe that the worst has come and is now behind us. Has the liquidity crunch and sub-prime mortgages actually peaked? The labor market for one supported that theory and the fact that the dollar was able to gain against others sprung hope back in the economy. But who knows where this will lead us? Revisions are possible and maybe the data was inaccurate. The housing sector is still shaking the economy but again it might be the end