Quiet USD Rally as Gold Continues to Climb the Charts

By: GoLearnForex
Global Equity Markets advanced again on Wednesday. In the U.S the DJIA closed up 44.29 points to 10,291.26 in lighter than normal volume due to the Holiday. The Dollar strengthened later in the day after the DXY briefly touched below 75.00 The Sterling came in as the big loser giving up 1.05% to trade at 1.6570, while the CAD advanced again today up nearly .4% to 1.0450.

In spite of the quiet Dollar rally Gold continued its climb to close at 1,118 and a gain of $12. Investors tend to buy Gold when economic times are uncertain. The purchase of large amounts of Gold by India and Sri-Lanka last week, in addition to the G-20 summit in which all members agreed to maintain quantitative easing programs for as long as necessary, have led investors to believe Gold will be in demand for quite some time to come. Oil was flat for a second day in a row closing below 79.50.

This week has been light in the way economic releases. Tomorrow, Australia's Unemployment figures are set to print. We would expect that if these numbers underperform that the AUD will lose some of it strength given the current stance of the Australian Central Bank. In the U.S. Continuing Claims and Initials Claims are due out and although they are a weekly print, it may confirm the dismal employment situation in the U.S. Traders are looking for any signs that the employment situation is improving and therefore they will be watching these weekly numbers closely.


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