Record earnings from US companies sent Gold and Oil higher last week. Gold rose nearly 10% since August 2009 recording an all time high last week. Gold is being seen as a hedge against inflation, and with all the money being pumped in the economy lately, thus attributing for the strength in Gold.
Oil also hit a yearly high last week helped by better than expected Industrial production report. Some analysts see a $100 per barrel as not uncommon by end of year, if things continue the same. Optimism for recovery is building demand and pushing prices of Oil towards higher levels.
Japan, on the other end of the world, issued a report lately showing that services rose in august, thus giving optimism that its economy is recovering. Economists say that there has been a shift from buying goods to buying services, although that this move might not be sustained.
Finally, with no important economic indicators for today, most players will be focusing on technical studies on currencies.
Currency to watch out for: GOLD & SILVER
- The XAUUSD pivot point is at 1038.50 with a preference to enter into long positions at 1.040
- The XAGUSD pivot point is at 17.010 with a preference to enter into long positions 17.10
Today's calendar and market movers:
- FED Chairman Bernanke will be speaking today at 15:00 GMT
DOW industrial average closed lower on Friday by around 65 points, now standing just 5 points below the 10,000 handle. Asian stocks were generally up this morning with Hang Seng up 70 points at the time of writing of this report.