Looking at the charts of crude oil, we clearly see that the major factor, which has driven the price of light crude in the recent weeks was the uncertainty around Syria. How has it affected the link between oil and gold?
Last week India hiked the import duty on gold yet again to a record 10% and raised excise duty on the metal, as imports jumped in July despite the government's attempts to strangle supply and curb demand to rein in dollar spending.
Without a doubt, the recent weeks were tough for the U.S. currency. What has happened with gold? After a rally to over $1,347 the yellow metal declined below $1,300 per ounce and then pulled back to $1,320.
Gold rebounded sharply from a low at $1,285 to $1,317 after weaker than expected U.S. non-farm payrolls. Will we see a bullish scenario in the precious metals market? Or maybe recent gains are just a result of speculation and gold’s position will deteriorate?
We all know that if the market does not shake you out, it will wait you out, and sometimes it will even do both at the same time. So stepping back to review the bigger picture each week is crucial in keeping a level trading/investing strategy in motion.