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Gold remains stable as it awaits for a trigger…

By:   Crown Forex
  • 26-08-2008
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The precious yellow metal price is trading within narrow ranges as it remains stable in the markets since the green currency continues on strengthening and on advancing against other majors while crude prices are also stable threatened by the Tropical storm. Till now gold prices recorded a high of $821.40 an ounce from a high of $825.40 an ounce yesterday, which obviously means that it lost about $4 an ounce. Actually since Friday the metal is witnessing a continuous fall in its prices as the dollar is stronger, always having in mind that these two have an inverse relation and that gold evidently has lost its appeal of an alternative investment and a hedge against inflation.

Crude prices remain stable but at a low level as the Tropical Storm Gustav became stronger and a bigger threat in the area of the Gulf of Mexico which of course enhanced the probabilities of having the oil production disrupted in that area. So far oil prices recorded a high of $115.60 a barrel and a low of $114.85 a barrel resulting in contract that slightly shed $0.11 a barrel. Not forgetting that oil as gold is becoming less attractive since the dollar is stronger, having investments swap from the commodities market to go to the dollar.

The green currency is stronger and gained ground against the majors as the data on the housing sector that was released yesterday in the United States improved and was much higher than expected which gave more strength to the dollar. Moreover until now, most of the economical data that was released in Europe is low or negative and the business confidence is low in Germany, the strongest economy in all Europe. And of course this weakening in the European economy and currency permitted and encouraged the green currency to gain more grounds in the market. Due later today, we have US fundamentals concerning housing, where this could be the trigger that could either extend dollar gains or cause a significant slump.

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Crown Forex
CROWN FOREX SA, located at St-Hubert 38, 2854 Bassecourt, P.o.box 247, Switzerland, is fully regulated as a financial intermediary under Swiss federal law on the prevention of money laundering (LBA, MLA). Our company is also affiliated with the ARIF association, thus overseen by the Swiss federal de

DISCLAIMER:

The above may contain information for investors/traders and is not a recommendation to buy or sell currencies, gold, silver & energies, nor an offer to buy or sell currencies, gold, silver & energies. The information provided is obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness.  I am not liable for any losses or damages, monetary or otherwise that result.  I recommend that anyone trading currencies, gold, silver &energies should do so with caution and consult with a broker before doing so.  Prior performance may not be indicative of future performance. Currencies, gold, silver &energies  presented should be considered speculative with a high degree of volatility and risk


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