The FTSE is indicating a very weak open, as traders are worried that the Producers Price Index will be stronger then expected, which will make it harder for the Bank of England to cut rates at its next meeting. Adding to the weakness is oil, which is trading at record levels, after Fridays huge jump. It seems like it will be a hard day for equities around the world, as both the DAX and the CAC40 are also indicating a very weak open.

Commodities got a boost on Friday mainly due to the weakness of the US dollar. Gold surged over 900 dollars per ounce, and it looks like it will be heading higher. As weak economic outlook in US is pushing a lot of money out of equities and into the safe heaven know as gold. We are expecting gold to be treading higher and should hit north of 915 with in a two weeks time.