Daily Market Forecast – Gold Prices Continue to Drop, US Dollar Remains Strong

Gold’s slump has continued and it remains under pressure. U.S Crude Oil found additional buyers on Monday after consolidating much of last week.

EUR/USD: Early January Values Tested

The Euro is below 1.21 versus the U.S Dollar after losing additional ground on Monday. The European currency is testing support levels not seen since early January of this year. Traders may be tempted to look for additional selling pressure to build on the Euro in the near term.

Gold: Shine Diminished for Precious Metal

Proof of the U.S Dollar’s recent strength is clearly evident in Gold, which is near 1312.00 U.S Dollars per ounce. The precious metal has slumped badly the past two weeks and is struggling to find short-term buyers. Gold may see its shine diminish more in the coming days.

Crude Oil: Upward Trend Potential after Consolidation

U.S Crude Oil attracted speculative buying on Monday and rose above 68.00 U.S Dollars per barrel. The commodity has maintained its high values with a stable range and appears ready to potentially move upwards after consolidating the past week.

USD/JPY: Yen Testing February Price Levels

The Yen has remained on its weaker legs as it trades near 109.40 against the U.S Dollar. The Japanese currency is testing prices not experienced since early February. Risk appetite has shown signs of life via the Nikkei Index the past month. And traders may look for additional weakness from the Yen, and buy the U.S Dollar against the Japanese currency.

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GBP/USD: Bank of England Disregarded for Now

The Pound remains under the 1.38 level versus the U.S Dollar. Important manufacturing data will come from the U.K today. Investors have certainly brushed aside any possibility of a rate hike from the Bank of England short term. The British currency was stable yesterday as traders search for equilibrium after the Pound was hit hard last Friday.

Yaron Mazor is a senior analyst at SuperTraderTV.

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