Abstract:Gold fell heavily following hawkish remarks from the Federal Reserve's chairman.
XAU/USD bears throw in the towel near a critical support area.
The focus is on a significant correction back towards $1,830.
Update: Gold price is meandering near one-week lows of $1,813, as the demand for the US dollar remains unabated amid rising two-year Treasury yields. The two-year US rates spike to fresh 23-month highs of 1.192% as the Fed funds futures tumble on expectations of five rate hikes this year. Fed Chair Jerome Powell fanned hopes of March lift-off while opening doors for faster rate-hikes to tame inflation. In reaction to the hawkish Fed outlook, gold price corrected sharply from two-month peaks, having failed to find acceptance above the $1,850 mark.
Looking ahead, the US advance Q4 GDP and Durable Goods data will be eyed for fresh US dollar valuations, which will have a strong bearing on gold price.
At $1,820, Gold, (XAU/USD) is virtually flat in Tokyo following market volatility overnight. Jerome Powell surprised markets with a hawkish pivot, commenting that the Fed could raise rates at every meeting if need be.
Additionally, Powell said in the presser that the Fed could move faster and sooner than they did the last time which helped the US dollar to extend on pre presser gains as US 2-year yields jumped the biggest one day gain since 2020. The US dollar rose to a five-week high:
DXY M5 chart, US session
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
HFX trading, also known as High-Frequency Trading, is a complex and rapidly evolving trading strategy that has gained significant traction in the financial markets over the past decade. It involves the use of sophisticated computer algorithms and high-speed internet connections to execute a vast number of trades within milliseconds, capitalizing on even the smallest market inefficiencies and price discrepancies.
Weekend trading has gained great popularity in recent years due to the rise of online and mobile trading platforms that provide retail investors easy access to markets outside of regular working hours. For traders with Monday-Friday, 9-to-5 jobs, trading on weekends allows them to be active in markets at convenient times.
Forex, short for foreign exchange, is the global market where currencies are traded against one another. Being the largest financial market in the world, the forex market features high liquidity and 24-hour operation from Monday to Friday. Investors range from international banks and governments to retail investors and traders, all engaged in buying, selling, and exchanging currencies at current or determined prices. The primary purpose of Forex trading is to facilitate international trade and investment by enabling currency conversion. It also offers opportunities for speculation on currency value changes due to economic, political, and market dynamics.
As a type of financial derivative, futures hold a critical position in the global financial markets. Offering benefits such as hedging against price volatility and high leverage, futures trading brings significant advantages. This article aims to define futures and explain their function, highlight the benefits of trading futures, and provide a comprehensive review of leading futures brokers such as Interactive Brokers, TradeStation, E*TRADE, and Charles Schwab.