Dollar loses ground, gold and silver fly higher

The US dollar fell sharply Tuesday, sending precious metals notably higher. At the time of writing, the EURUSD pair was nearly half a percent higher, trading at around 1.1650.

It looks like the recent uptrend in the greenback might be over, despite rising short-term US yields. For example, the Australian and New Zealand dollar have already jumped above their intense resistance levels, while EURUSD and GBPUSD are currently attacking their significant resistances. For the euro, the critical resistance zone is between 1.1650 and 1.17. For the cable, the selling zone stands at around 1.38.

 

Therefore, the Dollar Index declined sharply today, falling toward the significant support level of 93.50. If the index drops below the level, the medium-term uptrend could indeed be over, targeting the 50-day moving average near 93.25.

 

The falling US dollar is ordinarily bullish for gold and silver, and both precious metals advanced significantly today. Silver was up 2% during the London session today, jumping toward 24 USD. At the same time, gold was spotted nearly 1% stronger, rising above its 50-day moving average.

 

It also looks like another bullish day for the US equities as all four benchmarks were trading higher. Additionally, both NASDAQ and the S&P 500 indices pushed above some strong selling zones, confirming the short-term uptrend.

 

Later in the day, the US building permits and housing starts data will be published. However, these figures usually don't cause any market volatility.

 

Additionally, the Financial Management Service will release the US monthly budget statement, summarizing the financial activities of federal entities, disbursing officers, and Federal Reserve banks.

 

Finally, the API weekly crude oil stocks are due, possibly causing volatility in oil. At the time of writing, the WTI oil Benchmark was trading somewhat higher on the day, changing hands at around $83 a barrel. 

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