Today gold and oil remain steady after a sharp drop both commodities witnessed as the dollar gained against majors undergoing correctional movements.
Gold was traded above $900 an ounce reaching a high of $908.30. Actually, the precious metal price is trading sideways with no specific trend seeing that the U.S consumer confidence continued to fall despite oil prices retreating from record highs. The metal witnessed a sharp drop yesterday yet it failed to gather enough momentum to rebound to the upside after hitting the support level at 902.80 level.
Oil price stayed steady and high yet falling below $128 a barrel always due to the basic supply and demand factors; having a strong international crude demand and a weak oil supply. Moreover, we are entering a busy summer driving season in the U.S which will higher up oil consumption and consequently its prices. This steady oil price makes backs up gold price to be stable as well.
Now, the U.S dollar fell as other major currencies saw their value rebounding unlike yesterday where other majors were weak as they adjusted their status to the overbought area they were being traded in. Adding more strength to the dollar yesterday was the release of the housing data showing that new home sales were strong yet it shouldn't be taken for granted that this is the end to the housing crisis. This data is still subject to revisions and therefore wasn't enough to help the dollar maintain the momentum it needed to gain against majors in the markets as we see today.