Gold hit a record high and broke through $3027, focusing on European and American economic data and Canadian dollar inflation

Gold benefits from escalating geopolitical tensions and trades at an all-time high of more than $3,027 in early Tuesday. The European Economic Calendar will contain data on Germany's economic prosperity and euro zone trade difference. In the second half of the day, market participants will closely monitor industrial production and housing data in the United States, as well as Canadian inflation data in February.

According to Reuters, Israeli Prime Minister Benjamin Netanyahu's office said on Tuesday that Israel resumed military operations against Hamas in the Gaza Strip. “From now on, Israel will take action against Hamas with an increasing military force,” Netanyahu further added. Meanwhile, U.S. President Donald Trump said they would hold Iran responsible for the attacks on the Houthi forces, after the group launched an attack of 18 ballistic and cruise missiles and drones on the USS Harry Truman on Sunday. In response, the United States reportedly carried out new air strikes on Monday in the Red Sea port city of Hodeida and the province of Jorv, north of the capital Sanaa. Gold continued to move higher after gaining about 0.5% on Monday, with the latest trading price at an all-time high near $3,020.

Basic foreign exchange market trends:

The US dollar (USD) index opened bullish on Wall Street on Monday and closed in the negative area on the same day. In early European session on Tuesday, the index stabilized around 103.50, while U.S. stock index futuresavatradescn.com fell 0.2% to 0.3%.

The US dollar/Canadian fell more than 0.5% on Monday and fell below 1.4300. The pair rebounded slightly around 1.4300 to start the European session. On an annual basis, Canada's Consumer Price Index (CPI) is expected to rise 2.1% in February after a 1.9% rise in January.

Euro/USD took advantage of the weakness of the dollar and closed above 1.0900 on Monday. Earlier on Tuesday, the pair fluctuated within a narrow channel around 1.0920.

GBP/USD rose more than 0.4% on Monday and hit its highest level since early November around 1.3000. In the early European session, the pair was in a consolidation phase around 1.2980.

The USD/JPY continued to rise after rising on Monday and hit a two-week high above 149.70. Japanese Finance Minister Katsunobu Kato said at a press conference on Tuesday that the bond market should decide on interest rates after the 40-year government bond yields briefly jumped to an all-time high.

Bulle market fundamentals:

U.S. lower-than-expected retail sales and factory activity data continue to put downward pressure on the US dollar and U.S. yields, opening the door for further gold rises. Gold hit an all-time high of $3,027.

Analysis of major currency trends:

Euro: The intraday bias of the euro/dollar remains neutral as the consolidation continues below 1.0946. If the decline is again, the downside should be curbed by the 38.2% retracement level of 1.0358 to 1.0946 at 1.0721 to achieve a rebound. On the plus side, breaking through 1.0946 will resume the rebound from 1.0176, retesting the key resistance level of 1.1274.

GBP: Although the upward momentum of GBP/USD is not convincing, as shown in the 4-hour MACD, as long as the 1.2910 support level is held, it is expected to rebound further. Continuous trading above the 61.8% retracement level of 1.2923 from 1.3433 to 1.2099 will pave the way for a rebound to the 1.3433 high. However, a breakout of 1.2910 will indicate a short-term peak and turn bias back down for a deeper callback.

Yen: The intraday bias of the US dollar/yen remains neutral at this point. Although the rebound from 146.52 may expand further, the upside space should be limited by the 150.92 support rotational resistance. On the downside, the small support below 148.22 will first retest the low of 146.52. Continuously below 139.57To 158.86, the 61.8% retracement level 146.32 will pave the way for 139.57 support. However, a decisive breakthrough of 150.92 will weaken this bearish view and turn to upward resistance at 154.79.

The above content is all about "【AvaTreade】: Gold hit a record high and broke through US$3,027, pay attention to European and American economic data and Canadian dollar inflation". It was carefully avatradescn.compiled and edited by the Avatrade Forex editor. I hope it will be helpful to your trading! Thanks for the support!

Life in the present, don’t waste your current life in missing the past or looking forward to the future.