The US dollar has recorded four consecutive days of gains, putting downward pressure on gold, while technology stocks continue to advance.

This week's US CPI and PPI data reached multi-year highs, highlighting the evident and spreading inflationary pressures stemming from geopolitical conflicts. This situation may increase pressure on the Federal Reserve to raise interest rates, aiding the US dollar index's four-day rally. The next target for the bullish momentum appears to be the gap near 99.30/50 left on April 8. Overnight, weak demand at a US Treasury auction pushed yields higher, indirectly supporting the dollar.

The strengthening dollar has led to a three-day decline for gold, with silver plunging 4% overnight. The dollar's recovery this week is attributed not only to domestic economic data but also to weakness among its peers.

The British Prime Minister faces increasing pressure from within the party to step down, with the Labour Party nearing the initiation of a leadership contest. The British pound fell 0.9% overnight, marking its fourth consecutive decline.

News that the Japanese government is considering a supplementary budget for the current fiscal year has triggered continued selling of Japanese government bonds. Yields across maturities, especially on the long end, have surged, weighing on the yen. The USD/JPY pair broke above 158 overnight. Without intervention from the central bank or expectations of a rate hike, 160 could be the next target, which is also the level that triggered intervention two weeks ago.

International crude oil prices held steady overnight, remaining above $100 per barrel. Iran reported that 30 vessels have passed through the Strait of Hormuz since Wednesday night, but this is insufficient to offset the significant supply shortfall, suggesting oil prices may remain elevated.

Despite the strong dollar and the ongoing stalemate in the Middle East, technology stocks maintained their strength, extending the positive market sentiment from the recent high-level meeting between the US and China. Preliminary agreements included US approval for Nvidia to export its H200 chips and procurement orders for Boeing. Nvidia's stock rose over 4%, bringing its market capitalization close to $6 trillion. The company is scheduled to report earnings on May 20. Cisco surged 13% following a strong earnings report.

However, could the persistent rise in the US dollar and Treasury yields gradually erode market optimism and upward momentum? Traders should be mindful of potential reversals in extreme sentiment and profit-taking activity.

**XAUUSD Gold Daily Chart** Gold has been unable to break above the resistance of the 50-day moving average amid this week's dollar rebound. After falling for three consecutive days and losing the key level of 4650, a continuation of the weak trend is possible.

As shown in the chart, short-term resistance is evident near the 4630 level, while support exists around 4600. A break below this could shift focus to the trendline support area near 4530/60. On the upside, the previous support zone of 4650/80 may now act as resistance.

**NASDAQ 100 4-Hour Chart** Will the rise in the dollar and Treasury yields gradually dampen market optimism and momentum? The market's price action will provide the answer.

As indicated, the trendline and moving average near 29050 serve as a critical juncture for the NASDAQ 100 index, potentially exerting significant influence on market sentiment. A break below the 28500-28640 region could open the door to a larger corrective decline.