Thursday, 22 Oct 2009

Gold Prices Stabilize Near 1,060

The USD witnessed a steady depreciation against most of its major currency counterparts during the afternoon trading session. The Dollar is currently trading lower against the CHF by nearly 40 pips at 1.0045. It is also trading lower against the EUR and GBP, as investors remain wary of making big bets in favor of the Dollar these days.

Gold Prices was steady around $1,060 on Thursday as the dollar fell slightly against the EUR and crude oil maintained its strength, although some resistance emerged around that level. Further gains could be on hold for the rest of the week, however, as investors await news that will provide clues to the state of the global economy.

With so much news affecting the stock market and forex, many traders tend to overlook the benefits of commodity trading. Crude Oil and gold tend to be an investment with a lot of potential, making them one of the safer investments for a portfolio looking for a hedge against inflation, or away from the volatility of many currencies. Tomorrow's news releases about British Prelim GDP and U.S Existing Home Sales data are expected to create a heavy level of volume and volatility, meaning most commodities will experience something similar. Don't miss out on these opportunities if you're an active forex trader.