Markets React to Interest Rate Pressures

Gold prices have fallen this week due to ongoing interest rate pressure in the US. Despite sitting at a major uptrend line and on top of a significant demand zone, gold's prospects are uncertain.

The situation is complicated by the jobs number in the US being a significant miss, which has affected not only the gold market but also the British pound. The GBP/USD pair is currently at its February lows, with support coming from 1.3150 and the 200-week EMA. However, resistance is substantial near 1.37.

The euro has also fallen this week, testing the 200-week EMA, but it faces additional pressure from French debt concerns. This may make trading EUR/GBP a more appealing option over EUR/USD.