Today’s Housing Data Below Street Expectations

The dollar is still the premier world currency, and the gold market’s near-term direction could depend on its interactions with the currency market and the overall economic sentiment. The Euro edged higher after today’s housing data clocked in below Street expectations, and inflation continued to be non-existent. Last on the Euro $1.4118 up 36/100ths of a U.S cent.

Gold bounced on Tuesday, following the previous session’s sell-off on doubts about economic recovery, and the strength of the dollar could set the tone for bullion in the near term. Crude jumped $2.02 per barrel reflecting today’s bounce in stocks. Gold rose amid a mixed bag of news as the dollar weakened and the U.S. producer price index fell more than expected in July. Last trade on oil $68.77.

As for the metals; Silver finished the day off 7 cents at $13.95. Gold rose $4.00 to $938.00. Palladium gained $3.00 to close at $275.00. Platinum was $1.00 higher finishing at $1224.00. Volume was light.

Over in the stock market the Dow is currently up 73 points with banking stocks leading the way. As for tomorrow; the economic calendar will be idle, but we will get the latest Weekly Oil Inventories to help stir the energy trading pot.

Thursday’s economic calendar:

U.S. Initial Claims
U.S. Philadelphia Fed Survey
U.S. Leading indicators
German Producer Prices