The new week, month and quarter has started brightly for the U.S. dollar, with both the Brish pound/U.S. dollar (GBP/USD) currency pair and euro/U.S. dollar (EUR/USD) currency pair trading lower at the time of this writing.
Oil prices surged this quarter as Brent crude put in the best performance in 13 years. This comes as oil demand is surging, geopolitical risk is rising and Moody’s warns that shale oil producers will need $50 a barrel plus oil to make any money.
The last Gold Market update, posted at its recent peak on the 11th, called for a significant reaction back by gold, and that is exactly what has since happened. It also called for a rally in the dollar, which hasn't happened—yet, but as we will see in this update, it looks likely to happen soon, and given that gold's COTs have barely eased on the current reaction to date, it, therefore, seems likely that gold will lose more ground on a dollar rally.