Hello traders everywhere. A surging dollar is putting increased pressure on gold driving it down to its lowest levels of 2018 to date. Gold is currently trading below the $1300, it's the lowest level since late December of 2017. With red Trade Triangles across the board indicating a strong downtrend and higher than usual trading volumes expect gold to head lower.
The dollar's continued strength is due to a surge in interest rates. The benchmark 10-year note yield hit 3.095% on Tuesday, its highest level since 2011, while the two-year note yield traded around levels not seen in a decade.
As for stocks, overall the stock market is on the rise with the big mover of the day being Macy's (M). Macy's shares rallied more than 10% on stronger-than-expected quarterly earnings. The company's same-store sales a key metric for retailers, rose 4.2% last quarter versus an estimate of 1.4%.
Bitcoin finally succumbed to the "bitcoin bears" and issued a red weekly Trade Triangle at $8,342.58 while breaking through the 50-day moving average, which could become the next level of resistance if bitcoin were to move lower.
Key Levels To Watch This Week:
S&P 500 (CME:SP500): 2,594.62
Dow (INDEX:DJI): 23,531.31
NASDAQ (NASDAQ:COMP): 6,926.97
Gold (NYMEX:GC.M18.E): 1,313.10
Crude Oil (NYMEX:CL.M18.E): 71.63
U.S. Dollar (NYBOT:DX.M18.E): 90.08
Bitcoin (CME:BRTI): 8,559.95