This time it was the US data on Manufacturing that fell; and that too for the first time in about 3 years. Recently weak data has been appearing on the statistics bulletin for both Asia and Europe, suggesting that the EU debt crisis is causing global economy to slow down. This helped in raising the price of Gold on Tuesday 3rd July 2012. The signs of getting a quantitative easing are low as Fed recently turned down this option. Crucial data is expected this Friday which will show the non-farm payrolls of US economy which will help to predict Fed’s next move.
Recently Euro has been improving its relation with US Dollar as EU nations were seeing taking some solid measure to solve the crisis. This is again subject to how the measures will be implemented. This had lead to a $7 dollar increase in US crude oil and $6.5 per barrel for Brent on Friday. So crude oil prices fell on Monday which was not surprising given that the low demand is still here to stay.