Today, we see a scenario in the markets similar to yesterday's as the shiny metal was able to appreciate on the back of the surging oil prices while the dollar is still experiencing a downfall.
Gold remains lucky as the precious yellow metal inclined today being supported by the strong oil that is still seeing an increase in its prices. Gold reached actually today $877.80 an ounce from $864.10 an ounce yesterday, a light increase of $13.7 an ounce. As long as the oil is up, gold will be doing the same since it has a direct relationship with oil; gold will remain high till the dollar comes back hard to knock oil out from the scene or the financial ring.
Oil which reached a high of $116 a barrel on Friday saw its price climbing to a high of $120.23 a barrel today as yesterday where it even reached an all time high of $120.36 a barrel. This oil that became stronger in its value is always due to the same reasons of the past days that in a way or another affected and limited the international supply of oil and made therefore its prices incline, major reasons as the attacks that took place in Africa's biggest oil importer Nigeria against Shell's oil facilities and the issue of Iran, one of the biggest oil importers and the west that is becoming worse because Iran is not backing off from the nuclear program that they are developing.
Now the dollar has weakened and lost value in front of major currencies such as the euro and the yen. The dollar is mainly losing power due to the lack of confidence in the US economy, a confidence that is still questioning the future of the financial situation of these days. In addition to the strong oil that pushed and encouraged investors to head towards commodities and leave the dollar on its own, investments basically swapped from the US currency to oil and gold.