Crude oil for December delivery was trading at $82.34/barrel, down by 18 cents, at 1139 GMT while gold for December delivery was trading at $1,331.60 per troy ounce, down $7.30, at 1144 GMT. We believe that we will be seeing a bit of recovery from the USD today as we believe that the market has already valued USD very low after the G20 meeting and it is now time for USD to show a bit of recovery to adjust to its actual value. This recovery will decrease the oil and gold prices in the market. Easing of the crude oil and gold prices has already been witnessed in the Asian markets today.
Having said this, we also believe that this recovery will not be a big one or a prolonged one because the market is still in a state of uncertainty over USD which will hopefully be cleared next week after we get to know the decisions made in the FOMC’s meeting over QE2. If the size of the QE2 is not substantial we will not be seeing any further weakening of the USD as the negative effects of this easing have already been priced in to the USD by the market. As far as this week is concerned, we expect to see the dollar fluctuate as it has been doing for the past few weeks now.