Gold benefits from weak US dollar
Gold gained new momentum in the wake of US President Donald Trump's Russia affair. On Monday, the Washington Post reported that Trump may have revealed highly classified information to Russian Foreign Minister Sergey Lavrov. On Wednesday, the Justice Department appointed a special counsel to investigate contacts between Trump's campaign team and Russian operatives. In the wake of this news, Gold briefly poked through the chart’s significant 200-day-moving-average to reach a 3-week-high of 1,265 $/oz. At the end of the reporting week, risk tolerance in the markets rose again, with Gold closing at 1,255 $/oz.
At the macroeconomic level, the euro continued to strengthen, climbing to 1.12 US dollar by the end of the trading week. This can be attributed not only to political uncertainties in the United States, but also primarily to positive signals from Angela Merkel and her new French counterpart Emmanuel Macron regarding the EU, as well as a possible ECB interest rate hike in 2018. In the short term, Gold can be expected to continue moving in the ascending channel that has prevailed since December.