A key factor for traders to be mindful of in the following sessions is the current relationship between the USD and Gold. During the current week the Greenback has been lifted to a new yearly high, with the Dollar Index jumping to levels previously seen in May 2020. On the other hand, the Gold market today reached levels previously seen in August 2020 and is nearing the previous all-time high price which was nearby $2075 seen back then. The greenback could be appreciating as the US economy continues to display strength on multiple fronts possibly approaching pre pandemic levels, leaving aside supply bottle necks that continue to drive inflationary pressures. However, Gold\u2019s impressive rise could be driven by global economic uncertainty and worry. Previously, investors and traders have used Gold to cover for the market\u2019s insecurities over the economic growth moving forward and these worries can remain in the background, if tensions in Ukraine persist. Military intervention in Ukraine by Russia seems to remain a fact for the time being, yet the financial world is focusing more on the measures other nations are taking against Russia. The European Union and the US, are implementing rules that will be reducing their dependence on Russia for Energy supply, relating to both Oil and Gas. Moreover, Reuters noted in a report that the London Bullion Market Association (LBMA) suspended its authorization of six Russian precious metals refiners, meaning they will no longer be able to sell gold and silver in the London market. However, these actions have led to energy and agriculture commodity prices surging to new multiyear high levels, making the cost of goods even more expensive and subsequently adding to the already heightened market uncertainty. Finally, even though ceasefire talks have made headlines in the media, a swarm of refugees seems to be building up that could be worsening the situation. <\/p>\n\n\n\n
Looking forward in the current week, the most significant economic release that can create strong volatility for the Gold market are the US Inflation data coming up on the 10th<\/sup> of March. The CPI and Core CPI rates for February are of major importance for economists and traders. Inflation data seems to motivate traders to stay ready, as Gold\u2019s ability to be used as a counter tool for higher prices may come into play. At the same time and date, we also get the weekly Initial Jobless Claims figure. On the 11th<\/sup> of March we also get the notable Preliminary University of Michigan Economic Sentiment for March.<\/p>\n\n\n\n
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