Gold this morning dropped below the $1200 mark, the lowest prices we have seen in 3 months. Janet Yellen commented that interest rates should probably be increased which also sparked the Dollar to rise against the Yen, although she is in favour of an increase to the rate, Yellen has warned that the rate should be increased gradually and not too quick. Yellen’s comments come after numerous people from the Fed have said a rate hike would be sooner rather than later.
The strengthening of the dollar seems to have affected Oil prices too, with prices dipping this morning after reaching the $50 last week, the first time since last October. Prices are now hovering over the $49 mark due to other news that Iraq are looking to increase their Crude oil exports ahead of the meeting of OPEC.
It would seem that the Euro economic confidence is on the up as figures released today showed that consumer sentiment has risen in the month of May to 104.7 up from April’s figure of 104.0. This could be good news about the European Central Bank stimulus programme. The ECB will meet this Thursday in Vienna to discuss their policy which saw an expansion to the quantitative easing in March.