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Gold Seeks Recovery Amid USD Weakness
Confirmed
In Short: Gold is poised to recover from recent lows as the US Dollar continues to weaken, though inflation concerns and rising oil prices may pose challenges.
Gold is looking to resume its recovery from four-week lows, capitalizing on sustained US Dollar weakness across the board, according to FXStreet. The precious metal has snapped a two-day losing streak early Tuesday, staging a decent comeback toward $4,450 after finding strong buyers below the $4,400 level.
Later in the day, Gold could experience volatility as US traders return after the extended weekend and react to geopolitical headlines, while repositioning ahead of Friday’s US Consumer Price Index (CPI) data release, which could seal in a rate hike next week.
Meanwhile, the EUR/USD pair is experiencing a consolidative phase, with EUR clearly lacking upside initiative, as reinforced by a retreat from the 1.1482 high, according to Poundsterlinglive. Renewed tensions in the Gulf and rising energy prices are traditional EUR headwinds.
What's confirmed
What's still developing
- However, it remains to be seen if Gold sustains its recovery momentum, as Oil prices remain elevated at seven-week highs, keeping inflation concerns and Fed rate hike bets alive.
- The black gold stays underpinned by fresh Iranian threats in the Persian Gulf.
- Quarterly EUR/USD targets from Goldman Sachs, Barclays, JP Morgan, Deutsche Bank, ING and more — updated weekly.