Gold Rebounds after yesterday’s decline
Greenback yesterday managed to regain its bullish momentum and start the upside correction against major currencies; where the index closed at 75.49 rising from its opening levels at 75.21, which caused gold to recede throughout yesterday's trading session to close lower by 0.83% at $1054.70; silver also plummeted by 1.091% to close at $17.48 per ounce. The dollar’s rise was seen after worse than expected housing data which increased the heading to the refuge currency offsetting the better than expected earnings.
U.S. fundamentals, showed a retreat in building permits throughout September, thereby reflecting the houses sector's continued fragility and weakness which will reflect upon the aggregate economic performance and hurdle the recovery. The dollar index is trading at 75.35 after today's opening at 75.49.
The effect of the fundamentals on U.S. stocks were clearly negative; where they retreated from their high levels, after investors stepped away from risky assets and headed towards the safety of the US dollar. However, the drop gold witnessed yesterday was also needed correction as the metal resumed its upside move today. Gold recorded $1058.50 per ounce at 03:41 EST rising by 0.36%; whereas silver also rose by 0.29% to $17.53 per ounce.
Yesterday's fundamentals played a major role in predicting the
Crude retreated yesterday, leading investors away from investing in commodities. However, it returned to the upside throughout today's trading session reaching 78.80. Today, we are awaiting the release of the weekly EIA report; where U.S. crude stockpiles are expected to have risen by 0.9 MB. Hence, we expect crude to witness a decline throughout today's trading session affecting by continued signs of weak demand.