We are seeing some profit taking. There has been some bargain hunting on the precious metal so gold prices rallied as demand increased and now investors are selling to cash in some profits to record at this hour a low of 926.32 after opening today's session at $938.35 an ounce. A slightly stronger dollar yesterday due to news on home sales which came in higher than many investors have expected, helped the downturn in prices of the precious metal.

An overnight decision made by MBIA Inc. and Ambac Financial Group Inc. pushed the stocks to the upside. This influenced the precious metal pushing it to retreat. What really happened is simple; the two biggest US bond insurers retained their top debt rating, easing credit closes and curbing earning which encouraged investors to shift their investment from the bullion market into the stock market.

Meanwhile, there is a different story being oil prices. Currently oil prices slid slightly to record a low of $98.79 a barrel but let's go back though time and discuss what happened in the past few days which will give us an insight to what happened today. Recently, oil prices trades above $99 a barrel supported by supply worries over turkey' offensive in Iraq and also fears of an OPEC cut in output boosted the rally of oil prices. Investors then decided to change the path a little bit by investing in profit taking accompanied by a stronger greenback overnight on news that the US home sales came in unexpectedly better.

Good data on home sales boosted the greenback to the upside which in hand affected the gold as they usually move in an inverse direction. However, as for now the dollar is fluctuating positioning on hold ahead of major US fundamentals today.