Gold Price Dynamics

Gold prices have seen substantial fluctuations recently, influenced by the US dollar's performance and geopolitical tensions. Despite a pullback below $3,400, gold remains strong with support levels firm. Analysts suggest potential breakouts towards $3,435 and $3,500. Additionally, gold's haven appeal was highlighted amid renewed trade concerns, pushing prices to a temporary peak. However, prices eased back as market participants awaited US JOLTS data and further Federal Reserve communications. Notably, a shift in gold flows has been observed, with significant amounts returning to Switzerland from the US, indicating changes in global gold market dynamics.

USD Exchange Rates and Sentiment

The US dollar showed varying performance across different pairs. USD/CHF appreciated above 0.8200 as risk aversion decreased, while USD/CNH is expected to range between 7.1800 and 7.2300. The dollar's strength also influenced other currency pairs, with USD/JPY needing to breach 143.85 for a sustained upside, according to analysts. Meanwhile, economic data such as the upcoming JOLTS job data release are closely watched to gauge the dollar's near-term trajectory. The broader sentiment towards the dollar remains mixed, influenced by macroeconomic data and geopolitical developments.

Performance of Major Currency Pairs

Various major currency pairs have exhibited noteworthy movements. EUR/USD rose to 1.1418 amid a bearish sentiment towards the US dollar, with further upside potential if it can maintain momentum. GBP/USD approached 1.3500 following comments from Bank of England's Governor Bailey, with a potential advance above 1.3600 if the momentum sustains. The AUD/USD pair saw a decline, influenced by the RBA's cautious outlook and global trade uncertainties. In contrast, the NZD/USD pair showed potential for further strength, aiming to extend its rally to 0.6070 before encountering major resistance.