Markets Week Ahead: US Indices, Gold Recover Losses After US Inflation Fears

US Dollar Index Daily Chart

The mid-week volatility can be clearly seen in the daily VIX chart with a sharp post-US CPI rally on Tuesday. Again this move was reversed during the rest of the week.

VIX Daily Chart

While US indices remain at, or near to, recent multi-year highs, one index that has underperformed global rivals, the FTSE 100, had a very strong week on the back of supportive UK economic data. The UK 100 also benefitted from the slightly stronger US dollar with around 70% of company earnings made overseas.

FTSE 100 Daily Chart

Gold also trimmed losses this week, helped in part by the precious metal being heavily oversold, according to one technical indicator.