A Contrasting Story of Precious Metals and Oil

A Contrasting Story of Precious Metals and Oil
Hello traders, and welcome to the first full week of December. It seems that joy is abundant for index traders as we kick off the week. Friday's market showed remarkable performance, with Dow Jones reaching new long-term highs, and the S&P 500 matching its late July peaks. The DAX also saw an upward climb. However, the NASDAQ, despite being close to its long-term highs, is somewhat lagging behind.
In the forex market, the American dollar is displaying mixed strengths. The EUR/USD pair is trending lower, but this seems more due to the Euro's weakness rather than the dollar's inherent strength. This week begins with the dollar trying to assert its dominance, particularly noticeable in pairs like the AUD/USD, where a long-term downtrend line is being tested, and the USD/JPY, which is near its mid-term lows. It's crucial for the dollar to maintain these levels.

The Euro, on the other hand, experienced a tough Friday. Across various pairs, like EUR/CHF and EUR/GBP, we witnessed significant drops, akin to a waterfall effect on the charts.

Turning our attention to commodities, volatility is notably high in the precious metals sector. Gold experienced a sharp rise, surging from $2070 to $2140 per ounce, only to face a swift rejection at these highs, potentially signaling the start of a broader correction. Silver mirrors this trend with a similar corrective dip. Oil, too, isn't faring much better this morning, with prices falling to new mid-term lows.

As for today's economic calendar, we're anticipating the inflation data from Switzerland, expected to clock in at 0%. Later, we'll also hear from ECB President Christine Lagarde. For a typically quiet Monday, it seems there's quite a bit unfolding in the markets.
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