Gold finished the week at around 1212.00 USD maintaining it poor run. The precious metal continues to bounce along its lows with doubts widespread with the belief that it does not have enough backing to pick itself off the ground in the near term.
Crude Oil continued its run upwards and finds itself near highs. WTI finished the week near 103.00 per barrel. The commodity has broken its consolidation and has flashed upwards. However even with American economic data supposedly looking better on the surface there are enough international concerns that are abundant to question true demand in the later part of 2013.
Most of the major currencies have been weak against the USD as traders react to the clues being offered by the Federal Reserve that they are going to start pulling cheaper money off the table sooner rather than later. The EUR, GBP, and AUD have all stumbled against the Greenback. Having said that, a weakened Single Currency and Sterling will be welcomed quietly by the Europeans and the United Kingdom which have economies that are less than strong and would not frown about the possibilities for better exports from their national spheres.
While the jobless numbers on Friday showed some gains in hiring, the Official Unemployment Rate of the United States climbed to 7.6%. Global data continues to be lackluster, China’s economic statistics have been troublesome, and Europe remains the torch bearer leading the parade of the down and out. And let’s remember that any signs of erosion in U.S. economic figures could put the Federal Reserve on its heels in a rather quick fashion again.
Forex has proved particularly volatile the past couple of weeks and commodities have not been far behind in challenging traders. Short-term players who are capable of being nimble have plenty of opportunities with the current market conditions and the summer’s firework displays are likely to remain vivid.