Home > Market Recap: Gold’s Bullish Trend Continues As US Dollar Remains Offered

Market Recap: Gold’s Bullish Trend Continues As US Dollar Remains Offered

The US dollar remains offered during a slow start of the trading week. The Canadian housing data later in the day may bring some volatility to the CAD pairs. Gold set a new high.

The European equity markets started the trading week unchanged from last Friday’s levels. The Spanish index trades and FTSE 100 are virtually flat, both down 0.14%, while the German DAX is up marginally by 0.06%. It tells much about the price action in other markets, too, as the low volatility in the equity markets makes it unlikely that other markets (e.g. the currency market) will make significant moves.

The US dollar remains offered across the board. It fell against G10 currencies last week and the trend remains unchanged at the start of the new trading week. The EUR/USD pair, the most relevant currency pair, moved in a tight range in the Asian session, as no particular economic events are expected during the London session.

Gold continues its rising trend, marking a new high today. It broke above $1,850 and the market remains bullish.

Daily Analysis

The day ahead is filled with FOMC members’ speeches. As we saw last week, Fed members’ interventions are very influential on financial markets.

Inflation in the United States was much higher than the markets expected, and the dollar strengthened. However, the move up in the US dollar lasted only about a day or so, as Fed members talked it down several times. Therefore, by the end of the trading week, the dollar was unchanged, or even lower than before the inflation data was released.

Canadian traders have an eye on the housing data today. The market expects 305k new houses for the previous month, and any surprise there may move the CAD pairs.

Markets to Watch

Gold, EUR/JPY, USD/CAD  – markets in focus today.

Gold Price

Gold continues its bullish run. It keeps forming a series of higher highs and higher lows, typical in a bullish market. As long as these conditions remain in place, the pressure against the pivotal $2,000 mounts.


The EUR/JPY cross forms a rising wedge pattern, a reversal one. The price action remains bid while inside the two trendlines, but bulls should be aware of the fact that a move below 132 spells trouble.


The USD/CAD pair broke above a bearish trending and now bears are trying to take back control. If the market holds the previous lows, a move above 1.22 is possible. The WTI crude oil price is key for the Canadian dollar – it trades flat on the day so far, so it had no influence whatsoever on the trading day.

Winners and Losers

The US dollar remains offered, while the Canadian dollar’s strength persists.

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