Gains of Gold & Crude Turn to Losses
Markets are volatile this week as traders are constantly changing their view on the trading environment. Crude oil and gold are a good example of that volatility: the commodities fell on Monday, gained on Tuesday and erased their gains today.
The Group of Seven nations called for
Gold felt pressure from positive fundamentals in the United States. Why did traders view the good news in a bad light? Because that means less incentive for the Federal Reserve to stimulate the economy, while stimulus talks were the major bullish factor for the precious metal. The US economy continued to grow in the last quarter, while pending home sales rose more than expected in July, proving that the housing market is in good shape. Housing was the major concern, after unemployment, of the US central bank.
Crude oil fell from $95.82 to $95.14 per barrel as of 23:25 GMT today on NYMEX. Gold declined from $1,667.28 to $1,657.14 per ounce on COMEX.
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