Once again, gold saw its prices falling today as the U.S. dollar strengthened as it advanced against majors, always having in mind that these two have an inverse direct relation; the precious metal price reached a high of $873.60 an ounce. Consequently, the yellow shiny metal lost its appeal as it lost its role of a hedge against inflation and of an alternative asset.


Crude prices inclined as a planned strike took place in Nigeria, one of the biggest oil producers. This strike was organized by Nigerian oil workers and affected negatively on the supply of oil by limiting it. And of course, having a high global demand and a limited supply caused an increase in oil prices; demand and supply factors are the ones that impinged on oil directly although the dollar is strong yet keeping in mind the G8 meeting to be held where crude prices head the agenda.


The U.S gained today as retail sales were higher than expected, which increased the individual spending in the U.S economy and gave a good boost up to their currency. And as import prices were high, that added more to the inflationary pressures which supports speculations that the Fed could hike rates during this year, and this of course gave the green currency more power as investors target it for its high returns.