The week has started with some recovery signals from the greenback, while stock markets are taking a small pause after the recent rallies. The main scenario remains positive (we could say “risk on”), but we are seeing some investors taking profit. All this is reflected on the prices of gold and oil. While the oil price started the new week with a moderate decline, with both Brent and WTI in red, this tiny fall is not impacting the main trend so far, which remains supportive to oil’s continued recovery.
We should note that gold is in green after last week’s significant decline. This comes despite the recovery signals coming from the US dollar. Bullion seems to have built a solid support base at $1,830 and the price looks well placed to rebound. If the recovery continues, there is space for a swift gain to challenge a potential target between $1,880 and $1,900.