The yellow precious metal saw its price falling as the dollar gained not forgetting their inverse relation; gold reached a high of $894.35 an ounce today whereas it recorded a high of $904.10 yesterday. The strengthened dollar pulled away investors from gold as its role of a hedge against inflation did not exist any more till the dollar falls once again.

Oil, on the other hand, witnessed an increase in its price at the closing of last week to reach record highs above $135 yet couldn't hold on to the bullish momentum as it has now fallen after investors locked in on their profits. OPEC decided to call for a meeting by the Oil Minister Ali al-Naimi in Jeddah that it will abstain from raising crude output believing that the amount of oil supplied is pretty well sufficient and the rise in prices was due to speculative trading.

The US dollar gained against majors, especially the Yen and the Euro, as it's expected that the Federal Reserve may be finished cutting interest rates after Fed Chairman Mr. Ben Bernanke yesterday said that inflation remains of high priority which just added more to these speculations.The Pending Homes sales reading which unexpectedly rose to 6.3% in the US gave the federal currency the support it needed to weaken deeply the appeal of gold.