Given the current bearish trend, welcome news for the bulls finally arrived. Prices rose after seven days as China pledged to boost its economy. There are crucial upcoming events that will decide the future oil price. The foremost is talks with Iran this week over its nuclear program. The issue of weekly petroleum inventory on Tuesday by American Petroleum Institute will be closely watched for fundamental direction.
Gold fell as the EU debt crisis lent support to the US dollar. The demand for US dollar has an inverse relationship to the demand for Gold. Investors are waiting on the sidelines as they closely observe the EU summit where decisions and new measures on how to handle the crisis will most probably be discussed. Silver fell for the same reason as gold, being a tightly linked precious metal.
The euro held firm in response to chances that Wednesday’s informal meeting of EU leaders might help revive demand and boost confidence of investors in the EU region.
