Gold’s recovery today was largely based on dollar weakness

Gold prices recovered today after falling on both Thursday and Friday of last week. Gold gained $6.50 basis of the most active April contract in New York and Globex. Gold futures have resumed trading now in Australia and are currently trading right around the close of Globex at $2173.90.

Today’s video report will focus on how important recent dollar strength (last week) and dollar weakness today contributed to moving gold lower on Thursday and Friday and higher on the first trading day of the week.

It is obvious to me that market sentiment has shifted back to bullish, however, this wasn’t visible in trading at the end of last week due to extreme dollar strength pressuring gold lower. The shift in market sentiment has continued to result in gold trading in a very narrow trading range with the range between open and closing prices on a daily chart between $2160 on the low end creating short-term support, and $2190 on the high-end forming short-term resistance.

This week will be a shortened trading week as many financial markets including gold and silver will be closed in observance of a three-day Easter holiday weekend. Therefore, expect volume to decline as we get closer to Friday which could affect volatility.

Editor’s note:

Each Monday we are filming our weekly series “Chart This” with Jeremy Szafron, Anchor at Kitco News. However, because it requires a couple of hours of postproduction and editing before it is published on YouTube, we will include it in the interview section or add it, or both, to our daily market update page depending on when it is released.

Wishing you as always good trading,