The driver for the Gold market currently seems to be sentiment! The safe-haven aspects of the metal may have been a boost for the Gold, but will it be enough to propel it to further uptrends.
We have to predict a major agricultural and financial juncture just ahead.
Economic skies continue to brighten as some of the most troubled areas of the world (the Euro zone and Japan) are beginning to show some improvement and the only major nations that appear to be degrading are Brazil and Russia.
A number of central banks have implemented fresh easing efforts, German and European economic prospects have shown some minor improvement, and the prospect of lingering cheap energy prices is starting to offer global consumers new confidence.
U.S. wheat prices hit a seven-month high, a move that many analysts believe is a response to the Russian government’s interventions in the commodity’s markets.
Sometimes the problem with a cure is that it takes too long to work. In the case of sagging crude oil market, it appears that it has become daily confirmation that the global economy is slowing down.
The ongoing fear of global deflation just doesn’t fit with most of signals flowing from the marketplace.
The wheat market is surging higher due to issues in Russia.
The Gold rally on Nov 14 may have looked inviting to Gold bugs, but may be attributed to profit taking!
December Crude Oil prices saw more downside follow through selling pressure during the initial morning hours, falling under $76.50 in the process.