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Last week the euro zone dominated the headlines and traders can expect more of the same with euro zone countries releasing GDP numbers on May 15. 

The euro zone has forced industrial metals down for two straight weeks with no sign of the pressure letting up as economic data suggests China is slowing even more than analysts thought.

Gold bugs watched gold prices fall even further this week, basically wiping out 2012’s gains on the COMDEX as money flowed from risk assets to the safety of the U.S. dollar and Japanese yen. 

Greek politics are taking their toll on the euro this week. In fact the euro has been hanging around a three month low on the uncertainty of the Greek government elections, not to mention the euro zone is now struggling with a weaker China.   

Oh Canada – Oh Canada – seems to be doing something very right!

Yesterday traders saw the Aussie dollar lose ground as sentiment shifts away from risk only to flip today to more risk on, making the Aussies the strongest currency today.  

Many news outlets are suggesting natural gas has put in a bottom and crude oil has put in a top. The problem I have with those circulating this theory is that they are not in the thick of things in the oil patch. They are not out there getting their hands dirty on the stuff.

During the London session industrial metals dropped to the lowest level in three weeks on continued disarray in Greece, along with increasing fears of euro zone debt hitting raw metals hard.

Looking at gold’s outlook we find fundamentals and technicals at odds with each other. 

Inventories in the largest crude oil consumer, the U.S., increased last week according to the Department of Energy.