Is it an adjustment in the markets, or the markets are facing again some turbulences?? Directions changed especially on Friday, with Citigroup releasing out their first quarter losses with a full report, yet surprisingly markets took this announcements as good thing for the US dollar, boosting it to incline against the Japanese Yen to reach a high of $104.64; as now Market participants believe that the financial write downs had reach to a Peak, but is it true??? Did the United States reached a bottom and an end to the Credit Crisis???
The bullion did not really benefit from all that, as it's considered to be a dollar dominated commodity, which move in an inverse tandem with the US dollar. At the time the US earning came out to the markets, the shiny metal was pressurized down to record a low of $904.80 after recording a high $946.50 at the early trading session. While today the shiny metal opened at the early Asian trading session at $919.17, to record a high of $922.80 as it's trading in the early European trading session around $917.50.
On the other hand the black metal reached an almost new all time high above the $117 per barrel, at the time OPEC said that they are not going to increase their production, as they will maintain production, because markets are not facing any issues in the levels of productions in the markets. The relationship between the crude and the bullion got offset, as now they are trading in opposite directions, as the bullion was not boosted by the new all time high of the crude. So we can conclude that Mr. Abdullah el Badri, the OPEC security General, directly points out that the all time high oil levels was a result of a weak dollar and the turbulence in the markets.
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