The US Dollar is still by far the strongest currency on the FX market, with the Euro/Dollar recently reaching a 4-month-low. Despite this, the gold price is showing good resilience, holding steady $1,565 as investors wait for the US job data.
The technical scenario has changed slightly, as graphically gold is better positioned and could now target $1,575. In other words, despite the risk-on scenario of the last few days, the environment for gold is still supportive and a clear breakthrough of $1,575 could open space for another rally to the key threshold of $1,600.
The risk-on scenario seen on markets in the last few days was unable to generate a robust rebound for the oil price. This is confirming the weakness that we are seeing on the barrel as investors are still betting on significant risks of overproduction in the coming months.
Technically the oil price remains under pressure, especially after the break down of the support level of $51 seen in the last few days. The prices are still dancing around these levels, but the fact that there was no solid rebound confirms the current bearish trend, which can be stopped only by WTI climbing above $54.
