Disappointing news are still coming out, confidence slipping to more than 5 year low reaching down to 64.5 levels, consumers in the United States are fearing the worst, all starting to believe the fact that the States would fall into a recession or they actually might already be in a recession . While we are waiting for today's data, were they would be a good indicator to let us know if the States are really dipping into a recession or they might be fight back.
Like what I said yesterday if the US data comes worse than expectations the shiny metal would gather up some momentum to trade on higher levels, and that's what came out, the gold ingots rose the most in six days, closing at $938 levels after recording a high of $941.80, were investors' headed toward it just to hedge from the on fears of more rate cuts might be seen in the next meeting with about 50 basis points, just to revive the economy ounce again.
While on the other hand the black metal which shares a proportional relationship with the gold, surged higher at the early Asian trading session to trade around the $102 per barrel, as its trading now around $101.90 per barrel; the surge in oil prices was mainly triggered by the endless war in the Iraq which is now threatening to interrupt the supplying actions.
The dropping US dollar and the surging all prices played yesterday a major role in pushing the bullion to higher levels; as today if we see new data which would help the shiny metal to rally higher in a bullish momentum to almost near the all time highs that it recorded in the past week around $1030 levels.
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