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Since touching lows of $1,136 last Friday, gold has rallied strongly, trading as high as $1,225, as appetite simply doesn’t appear to be waning. It should be noted that Hu Xiaolian, a vice governor of the People’s Bank of China, warned that people should be watching out for “bubbles on certain assets”. UBS Wealth Management [...]

Upon release of yesterday’s oil inventory figures, oil slipped back, however it is trading to the upside in early trade. Data showed crude stock piles rose to 2.1mn barrels, way ahead of the 400,000 barrels expected by analysts. Increased supplies, coupled with the threat of falling demand helped oil lower, but we remain within the [...]

The dollar and the euro both strengthened against the yen on speculation that the ECB may signal an intention to tighten liquidity conditions. Speculation that the Bank of America intend to repay $45bn in aid gave investors further confidence that we are getting through the worst of the downturn. ECB announce interest rate decision today. [...]

EUR/USD Remains Elevated Ahead Of Significant Economic Releases And ECB The Nikkei has once again led Asian equity gains as Japanese exporters were boosted by a weaker JPY. An article in the WSJ claimed that Japan’s Tamaki (Vice Finance Minister for International Affairs) met with a representative of the Obama administration on Monday, and although [...]

COMMODITIES – Gold Sets Record Despite Strong Dollar * Gold scales new high in dollar, euro, sterling terms. * Funds also push sugar to record, copper to 15-mth highs * Investors lean toward tangible assets as Fed holds rates NEW YORK/LONDON, Dec 2 (Reuters) – Gold set a record high for the second day in [...]

Dollar Holds Firm Despite Equity Market Gains There has been a divergence in the pattern of risk appetite and USD flows today; as equities have stayed in mildly positive territory, but the USD has made gains on the day with the DXY +0.20%. Gold has pared back from early $1217.25 highs to current $1209 levels, [...]