As the week started, unlike the past days where gold inclined, the precious yellow metal is starting to witness a decline in its price in today's trading recording a high of $867.65 an ounce. This is due to the green currency that is gaining power and therefore pulling investors eyes away from the shiny metal as they have one thing in their mind and one thing only which is the high returns. Not forgetting that crude prices, that commonly support the gold in the market, are falling further from their record levels.
Oil prices eased in today's Asian trade not due this time to the strengthened dollar but after an OPEC official said that Saudi Arabia agreed to increase crude production in a meeting that was held in Jeddah seeing that the crude global demand is continuously expanding. Oil prices reached a high of $134.41 a barrel with a contract that shed $1.02 a barrel. Though no final decision has been taken, still an increase in crude production is highly expected.
Now concerning the U.S. Dollar, it advanced against majors and gained today as more and more investors are putting in the green currency as they visualize the high returns on speculation that Feds will hike rates to fight inflation, seeing that the Federal Reserve nowadays is mainly and strongly focusing on inflation. This of course highly reduced the appeal of gold in the market which stimulated the decline of the metal's price.