Crown Forex – Mixed Movements… Between Precious Metals

In the last period the demand on the shiny metal rallied upwards pushing prices to all time highs, and all that was due to the fact that the US economy was deteriorating, pushing the US dollar down south, but when the feds decided to control the situation by cutting about 1.25%, making all market participants speculate of a potential recovery to the US dollar, which dropped the appeal on the gold ingots.
In the last period the demand on the shiny metal rallied upwards pushing prices to all time highs, and all that was due to the fact that the US economy was deteriorating, pushing the US dollar down south, but when the feds decided to control the situation by cutting about 1.25%, making all market participants speculate of a potential recovery to the US dollar, which dropped the appeal on the gold ingots.

As the correction wave is still on, after all investors’ headed to buy gold in the short term, the bullion dropped down to trade today around 897.85$ per ounce, recording a high of 906.70$ per ounce at the early Asian trading session. While the Euro, which shares a proportional relationship, is trading around the 1.4790 levels, recording a high of 1.4831 at the early trading session.

Finally with the black gold fell today under the 90$ per barrel due to some expectations that the US crude oil inventories rose up to 2.2 million barrel, with more fears still hovering all around the United States about a recession which will eventually reduce the demand on oil production, directly affecting the gold prices.

But what came as a surprise is the all time high the platinum recorded last night, reaching 1797.60$ per ounce, due to the shortage of energy in South Africa which reduced the amount of production, but the silver and gold didn’t really move in a proportional movement with the platinum, as they kept on dropping because speculators’ started reducing the demand on gold as a safe haven.