Gold Up On Weaker Dollar

Gold is up with $13 overnight as dollar is trading weaker. US dollar is selling off over the last couple of days which caused the yellow metal to rally from $1,150 to a high of $1,177. Overall the long term outlook is very optimistic for the dollar with rising rates in 2017, Trump's strong administration and this would cause headwinds for the greenback and weak environment for Gold and metals overall.

That being said, the current depreciation of the dollar can be seen as a correction which helped Gold bugs to jump on in the trade to a 4 week high. EUR/USD is now at 1.0557, USD/JPY is at 116.18 and USD/CHF is gravitating towards 1.0167.

The correction is due to the release of the latest FOMC Minutes which sounded hawkish with increased risk on higher pricing and that drove market participants away from the dollar. But on Friday we get to know the latest NFP's and jobless claims and that would definitely leave an impact on market conditions.

Chart: XAU/USD D1