FXstreet.com (London) - Gold has traded up and down so far this session hitting high of $1127.28, but currently trades at $1123 down a Dollar formt he open. Bullion has been on a strong ascendency since the Indian central bank increased its reserves several weeks ago. Gold has found strength recently around speculation of other central banks boosting their gold reserves, as a means of diversifing.
Aussie dollar is strongly correlated with Gold, but this session has broke away to the downside, on poorly recieved statements from the RBA. It currently trades at 0.8989 down over 65 pips for the session and having broken straight through the 90 cent barrier, with no signs of slowing.
Oil legged up $2 in the earlier session in the US, on news of supply adjusts. It has traded tightly range bound this session on thin volume as investors close positions and look to 2010 for new opportunities, moving sideways
between $72.84 and $72.68.
Danske Bank comments on the broader commodities outlook in this interesting report.