Metals Shine, Indices Struggle: A Volatile Start to the Week

Hello traders, welcome to Monday and the last trading day of March.

The new week begins with a heavy tone, especially across indices, after Friday’s steep sell-off. That drop triggered fresh sell signals on major markets, and Monday isn’t bringing much relief so far. European indices are opening in the red, and DAX is currently fighting with a crucial horizontal support level—the neckline of a large head and shoulders formation. A confirmed breakout here would activate a major long-term sell signal.

On the currency market, there’s a clear flight to safety. The Japanese Yen is leading the gains, while commodity-linked currencies like the Australian Dollar, New Zealand Dollar, Canadian Dollar, and even the US Dollar are on the weaker side this morning.

Looking at commodities, metals are on fire. Gold and silver are up around 20% year to date, continuing their impressive run with more upside pressure visible this morning. Oil is also having a positive session, holding on to its midterm bullish momentum.

In the crypto space, the mood remains fragile. Ethereum is flirting with new long-term lows after failing to hold key levels. Bitcoin is also under pressure after breaking out below the wedge formation, showing further signs of weakness.

Lastly, all eyes are on the US Dollar, which remains undecided in early trading. The London session open has introduced some promising volatility, and traders should brace for higher activity in the second half of the day, especially with NFP week ahead.

Source: https://www.axiory.com/analytics/market-news/metals-shine-indices-struggle-a-volatile-start-to