Gold is still up...

on June 18 2008 3:53 AM

Gold is still maintaining its price gains since it came back up yesterday after that the dollar fell; today it reached a high of $884.40 an ounce. This falling dollar played the main role in the incline of gold prices, knowing that investors directly swap from the currency market to gold if profits are not being gained no more knowing that gold since always was and is a safe-asset and becomes a hedge against inflation when the dollar is weakening, exactly as today.

Now, concerning oil, crude prices are still falling; yesterday it was due to the anticipation of Saudi Arabia boosting production which predicted an increase in oil production and today as data was released in the US showing that gasoline demand dropped in the U.S though it's the world largest consumer. The crude contract shed $0.59 a barrel as it reached a high of $133.53 a barrel today from $135.53 a barrel yesterday.

The U.S dollar is still falling as investors are highly expecting that the Federal Reserve will not change interest rates till next week, consequently the euro-dollar pair increased today as the euro advanced against the dollar being traded around $1.55. Therefore investors are still remaining on the gold side till they start noticing a gaining dollar again with high returns.

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