Gold is clinging to recovery gains above $4,750 early Tuesday, capitalizing on hopes for diplomacy between the United States (US) and Iran. However, concerns over the Strait of Hormuz still pose a downside risk for the bright metal.
Another week begins with the same quiet tell hiding in plain sight. After a weekend drenched in alarm bells and worst-case chatter, liquidity is thin, and emotion is doing most of the pricing. Buy the Asia open dip. That is your signal.
The Aussie Dollar’s continuous rebound seems to have strengthened in the last few days, giving bulls back control and paving the way for AUD/USD to perhaps test the upper end of its annual range sooner rather than later.
Spot Gold trades with a sour tone on Monday, although still confined to a tight range just above the $4,700 mark. The bright metal is indifferent to mounting fears, after the United States (US) and Iran negotiations failed over the weekend.
The USD/CAD pair attracts fresh sellers following an intraday move higher at the start of a new week and now seems to have stalled its recovery move from sub-1.3800 levels, or a nearly two-week low set on Friday.
The EUR/USD pair came back to life this week, settling a handful of pips above the 1.1700 mark. Risk-on flows began late Tuesday, when United States (US) President Donald Trump withdrew his threat to destroy Iran.