High volatility across financial markets and the dollar pressure metals down

Despite the gains that dominated the American session last night for commodities and equities, yet the dollar soon after resumed to its strong grounds pressuring metals to the downside. Oil was also powered to the upside yesterday, as Bernanke's comments were more dovish than hawkish yesterday to Congress, powering recovery and demand expectations over inflation expectations, which revived markets on low rate expectations yet excluded the need for gold as a hedge!

The metal ended in NY at 1097.20 down by 0.57% while platinum settled at 1508.00 down 0.07%. AS for silver it did not join the lead, as the optimism supported speculative investments pushing the metal to close higher by 0.76% at 15.97.

Nonetheless, this vibe of optimism over the outlook failed to prevail for long, which soon reversed to gloom and Asian equities were battered to the downside on fear over the fiscal imbalance across nations with Europe and Greece at center stage. Standard & Poor's said late last night that Greece BBB+ rating might be downgraded by the end of March, while Moody's followed saying also that their A2 grade in a few months. This pressured commodities and equities lower and increased the dollar on aversion; as many nations seem to be facing the same dilemma and the global economic outlook grows further uncertain.

As for commodity indices yesterday, The S&P GSCI Index advanced by 5.51 points to close at 518.76; while the RJ/CRB Index added 2.34 points to settle at 274.74. Nonetheless, the gains were mainly driven by the gains recorded by crude oil.

Metals declined further on the back of this sentiment today and the dollar continued to advance while oil resumed slumping heavily. Gold is currently trading around 1089.70 down by 0.68% as of 02:47 EST. Silver also returned to its bearish base to trade lower by 1.50% around 15.73 and platinum was down the least with 0.33% at 1503.00.

The downside pressures are still prevailing in the market and the heavy fluctuations and mixed sentiment is translating in a state of fear and panic as the outlook for the global economy continues vague.