Today waiting for G7

The week has got to an end; no major changes took place in the outlook of most economies, after three economies released their rate decision with two of them not changing their rates, leaving the United Kingdom alone to cut rates with 25 basis point. Where now the attention is headed toward the G7 meeting, with most of the economies especially UK are demanding for some change, were the industrialized economies are asking china to ease up it control to let its currency appreciate against major to take off some of the pressures that are occurring in the markets.

In the early trading session yesterday we saw the shiny metal gathering up some momentum to start heading to the upside, as it was supported by the rising oil prices to an all time high in addition the weakening US dollar; but this did not last long because later in the day after the Mr. Trichet speech in a while the US dollar began gaining once again against the Euro and the Japanese Yen; this reversal movement obligated the bullion to head to downside dropping from the recorded high of $938.50 to close $10 lower at $928.80.

While today, as we just waiting to see what might be the comment in the G7 meeting; the gold ingots continued dropping to record only a high of $928.80 and a low of $920.10 as its trading now around those levels.

The bullion lost the proportional support from the Crude oil, dropping at the early Asian trading session below the $110 per barrel, after the Saudi Authorities announced that supply in the markets are sufficient at the time being which made investors' to ease down their positions, in addition the to increasing signs of a recession in the United States which would curb the consumption of oil as the United States is considered to be the largest oil consumer in the World.

Source from ibtimes