The markets are still calm, low volume dominated yesterday's trading, with the US dollar holding tight to its earnings that it began getting from Thursday last week, as it was backed up by the housing data released yesterday, coming better than the previous and expectations, giving some positive signs from the US economy, yet we can't say that this data shows potential healing for their economy.
With the low volume in markets, the shiny metal kept trading between $917.49 and $912.74, closing at $917.30 per ounce, not supported with any news. So the strengthened US dollar is preventing the bullion from picking up some pace once again, as they share an inversely proportional relationship, to reach the levels it recorded in the past week, were today the gold ingots opened at $917.40 per ounce.
With today's fundamental, the one and only Consumer Confidence for the month of March from the US, with the expectations that it will fall to 73.5 a five year low; if and only if the data cames out as expectations or weaker, it will be the chance for the bullion to pick up some momentum to surge higher to the levels recorded earlier. But the data came better than expectations I believe that the bullion will hold on the levels its trading at with a chance to plunge downwards.
While for the black gold, which shares a proportional relationship with the shiny metal, dropping below $100 per barrel, as fears still persist from a recession doom, dampening by that demand for crude, from the largest consumer of oil in the world; as the oil headed to the downside taking with it the shiny metal; decreasing the appeal on it as a hedge for inflation.