No signs of recovery, each day we come with some hope to see some improvements in the US data, yet the optimistic view got disappointed, analysts now fear the worst, not just from the housing sector, but from the other affected sectors. As it's apparent to us, the manufacturing sector is facing some tranquility, with durable goods falling down to 1.7% in February, with a harsher drop in durables ex transportation. After these data got released the feds currency headed to downside, were all markets participant now believes that the Feds committee will seriously think about slashing more points in the upcoming meeting just to save their economy from the edge.
But the gainer from all the US turbulence was the shiny metal, acquiring back most the fall downs witnessed last week; were yesterday the bullion recorded a high of $954.70 per ounce, closing at $952.35 per ounce. While today the gold held still in the Asian session, hovering around yesterday's levels, not supported by any news, yet in those days investors' are heading toward the commodities in order to hedge against inflation plus preventing from the fluctuations to the US dollar.
The trend moved by the bullion till now can be dictated from the Euro, as those two move together in a proportional movement; were today we expect the Euro to keep progressing in an upside direction, supported by high volume that pushed it yesterday to breach the 1.5700 resistance level.
Finally with the other commodity that plays as a supporter to the gold ingots which is the Crude oil, ticking up yesterday and continuing this movement today in the Asian session, were it now trading at $106 per barrel levels, acting as an opponent to the US dollar, gaining as the feds currency sinks down; also supported by the US crude oil inventories showing a flat reading yesterday, as the turbulence in south Iraq might delay the supply of oil.
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