Gold fell as the dollar powerfully strengthened for the third day; today the yellow precious metal recorded a high of $877.40 an ounce and is actually having its price floating above $876 an ounce these past days. Consequently, the yellow safe asset is loosing its appeal as a hedge against inflation having a strong dollar, not forgetting that these two have an inverse relation; so as soon as the dollar climbs the gold will directly fall.

Oil prices fell as well as the global demand for gasoline is slowing down and stockpiles are increasing; crude prices recorded today a high of $122.29 a barrel. This is mainly due to the fact that most countries raised fuel prices which lowered and discouraged oil consumption. Of course this drop in oil prices supported the fall of the gold prices.

Now, the dollar is still climbing up; being strong these days and gaining against most of the majors since that U.S. Federal Reserve Chairman Mr.Bernanke pointed out that the feds are favoring a strong dollar as a present economical solution as he warns about high inflation signaling that there is a possible rate hike by year end. As a result, investors are targeting the attracting green currency and its high returns leaving oil and gold behind.