Crown Forex – Gold’s Ingots Fate

Profit taking transactions are taking place, as the futuristic outlook of the US economy is gloomy, affecting the US dollar by pushing it south against the Euro and other currencies. With the increasing expectations that we might see another drop in the feds currency today, as we are having another important data released later today signaling that the US economy is really falling down in the recession trap.

While on the hand, gold ingots have been trading around 927.10 levels, trading in narrow ranges since the early morning recording a high of 926.65 levels; affected by the drop in the Crude oil prices trading now below the 91$ per barrel, who shares a proportional relationship with the bullion, due to the increasing expectations that the US economy is falling into rescission which would reduce the demand on the black gold and in addition to the increase in US crude inventories.

On the other hand, the Euro which considerably moves proportionally with the Gold ingots is now trading around 1.4879 levels, with some expectations that it will reach to higher levels after the release of the US data, gives us a slight idea that gold might rally up higher after the release; so lets juts wait and see what might be the gold’s fate later this day.