Crown Forex – Offsetting All Relationship…

Last week was a boiling week, filled with vital data that really pushed the US dollar down south, having the non-farm payroll lying off 17 thousand jobs, but on the other hand another data came and reversed all the action, decreasing the fears of a potential recession; the unemployment rate shockingly dropped from 5% to 4.9% in January, indicating with all that turbulence in the US markets the unemployment is still dropping supporting the US economy. This improvement came as a disadvantage to the bullion forcing it to drop down on Friday to 903.55 levels, as it shares an inverse relationship with the feds currency, in addition to profit taking transactions that took place at the weekend. Last week was a boiling week, filled with vital data that really pushed the US dollar down south, having the non-farm payroll lying off 17 thousand jobs, but on the other hand another data came and reversed all the action, decreasing the fears of a potential recession; the unemployment rate shockingly dropped from 5% to 4.9% in January, indicating with all that turbulence in the US markets the unemployment is still dropping supporting the US economy. This improvement came as a disadvantage to the bullion forcing it to drop down on Friday to 903.55 levels, as it shares an inverse relationship with the feds currency, in addition to profit taking transactions that took place at the weekend.

Today the gold started regaining some of its losses trading now around 909.50 levels, reaching a high of 912.70$ per ounce at the early trading hours. He surge in gold ingots recently was mainly contributed by the fact that the US dollar is falling but the other concealed reason is that the production of global gold production really dropped down to a 10 ear low in 2007 with increasing expectation that production this year will be heading down too, and the fist indication was obvious in Africa’s production that fell to 8.1%.

As for the proportional relationship that connects the gold ingots with the black gold, that was abolished in the recent period, both moving in different directions and affected by different reasons; oil prices had been heading down trading below 89$ per barrel as signs of recession in the United States is spreading all around the country, reducing the demand on the oil, but the demand on gold really reached higher because it considered to be the safe haven to all investors’ in the world.