Gold back above 1,800 USD as dollar loses its appeal again.

06/07/2021

It looks like the short-term uptrend in the USD is over, and the long-term downtrend will continue as traders are still digesting Friday's labor market data.
 

The EURUSD pair returned to 1.19 today, having erased last week's losses and pointing to further gains toward 1.1950. The USDJPY pair also looks like it has peaked, with the next support seen in the 110.50 region.

A weaker greenback is generally bullish for precious metals, and both gold and silver are rallying today, with gains also happening yesterday. Gold was 0.8% stronger during the London session, trading at 1,805 USD, while silver is approaching the 27 USD level.

From other news, oil continues to rally, and the WTI benchmark is up 15% since June, trading near 77 USD, the price last seen in October 2018. That is the last stronghold for bears, and if the resistance is broken up, the next target will be at 80 USD or 2014 prices for oil. 

US stocks remain in their long-term bullish trend, with the Nasdaq 100 and SP500 indices posting new record highs nearly every day now. European indices have moved sideways over the previous weeks, potentially consolidating before another leg higher occurs. 

Later in the day, the EU retail sales data are due, followed by the US ISM services PMI, expected to slow to 63.5 in June from 64 in May.
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