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Still Weak, Not being boosted by the Black Metal…

Published 04/22/2008, 08:00 PM

The federal currency still is tumbling against majors, weakening against the 15 nation currency to a record high yesterday at the early NY session, touching the 1.60 levels to rally down to downside, as it did not really trade above it, while now the euro is trading around 1.5957 levels. Expectations are hovering in the air, with some believing that the ECB next move might turn out to be a rate hike, others say that steady rates is what is going to happen. With the US dollar weakening against major, the crude oil is taking an advantage from that, whereas yesterday it rose to record a new all time high at $119.90 per barrel, giving the shiny metal a chance to rise slightly for the second consecutive day.

The bullion traded closed it's trading around $917.47 levels after recording a high of $925.25; while today the sparkling metal opened in the early Asian session at $917.50 to record a high of $921.60 and a low of $916.80.

But the surprising thing that the gold ingots was not really boosted by the all time high oil prices, as they both move in a proportional tandem because they are dollar dominated assets. So we can notice that the shiny metal was not really being affected by proportional relationship with the black metal.

While today markets lack any US fundamentals for the day, but having just the earnings of Amazon.com; in addition to the European data which will give us an insight about the manufacturing sector in the 15 nations.

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