Performance of US Dollar Index (DXY) and positive sentiments are showing signs of USD recovery
The greenback consolidated recent losses and performed better helping US Dollar Index (DXY) to refresh intraday high to 96.12. Strong US Retail Sales data and CDC decision lifted the risk sentiments and pushed the yellow metal out of favour, thus helping US Dollar to recover. While US retail sales jumped by 8.5%, US Centers for Disease Control and Prevention’s (CDC) decided to bring down isolation and quarantine period.
Other factors that are currently helping the greenback are the ebbing Omicron fears, hopes of further stimulus, and ongoing talks between Russia and Ukraine regarding Iran’s de-nuclearization. Earlier, US Vice President Kamala Harris had hinted at using her vote to pass Joe Biden’s Build Back Better stimulus plan.
Considering lack of major catalysts this week, Omicron and US Housing and Richmond Fed Manufacturing data would take the driver’s seat.
However, for the time being, capitalizing on the compromised run of the greenback, Gold is trying to consolidate its position. Take a look at the chart below.
Gold can apparently go up in the coming days. Recently Gold it tested the $1,800 mark. In order to maintain this recent uptrend, and to get a decisive break, Gold bulls are envisioning the $1,826 mark.