Dollar backs off, Gold insecure.

For the last couple of days we have seen how quick the euro can recover. One would expect that when the U.S. Dollar backs off , this would give the needed spark in Gold and send its price significantly higher. Not exactly. Gold has not seen much of a positive impact. This might be due to expectations building ahead of key economical data on Friday with the U.S. Jobs Report.

However, with the report on Friday, we are probably going to see a significant reaction in Gold market. A move north would suggest that the Fed would not be able to raise interest rates as soon as they want, which would be bullish for Gold. On the other hand, strong Jobs reading on Friday, would give the Fed a green light to go ahead and raise rates as soon as September, which would be bearish.

Chart: Candlestick EURUSD; Line XAUUSD; H4;