Gold prices have bounced back after previously declining to a multi-week low of $3,120. They’re rebounding, but can’t quite manage to get above the $3,200 barrier. The impetus for the rebound comes largely from a modest softening of the US dollar. Market participants clearly are not convinced as they too are playing it conservative. Gold continues to struggle to gain bullish momentum. This fight comes just as a series of important U.S. economic data releases begins to drop.
The EUR/USD currency pair has been the biggest beneficiary, making modest gains today. Indeed, it is justifiably maintaining a firm grip on the 1.1200 handle as the European session gets underway. This positive trend occurs against a mixed reaction to economic data reported throughout the District. At the same time, the pound’s defending of its gains in the GBP/USD pair has kept it out of first place, albeit still holding below the key 1.3300 barrier.
A look back at the recent performance of gold sheds light on the confluence of motivating factors shaping investor demand. The relatively US dollar has experienced a slight decline stimulating gold prices significantly. This has assisted gold’s recovery from its earlier lows. In the absence of speculation and alongside consistent buying, analysts insist that gold’s newfound strength remains fragile. Traders have been closely watching important economic indicators that could shape monetary policy decisions.
“Gold rebounds from multi-week lows, stays below $3,200” – www.fxstreet.com/markets/commodities/metals/gold
In the European session, the EUR/USD currency pair registered a slight increase. It continued to trade up, buoyed by favorable currency movements. This rise is not to mislead anyone about the extreme cautiousness of the market, as traders look ahead to key data due out this week. The GBP/USD has been surprisingly resilient in light of the mixed response to the latest UK economic data release.
The unexpectedly strong UK GDP and business investment data was unable to lift GBP/USD. That shows that the market participants are still fearful.
“GBP/USD defends gains below 1.3300 after UK data dump” – www.fxstreet.com/currencies/gbpusd