Gold price plunges before the Federal Reserve decision! Focus on how Powell views Trump's return. FXStreet's chief analyst provides technical analysis of gold price.
During Thursday's Asian session, spot gold basically stabilized after yesterday's sharp drop, with the current price around $2,660 per ounce. Valeria Bednarik, Chief Analyst at FXStreet, pointed out that the current gold price is still trading near Wednesday's low, despite recent oversold conditions, there is still a possibility of further decline.
After the huge earthquake, the "golden moment" of gold is still not over.
With the landing of major events in the USA, international precious metals prices have fluctuated significantly. However, Wall Street expects that as US inflation rises and the global demand for physical gold by central banks remains strong, the future gold price will continue to be supported.
Shocking! Trump's victory triggered a 175-point surge in the US dollar and a nearly $85 drop in gold prices. How to trade gold?
On Wednesday, after Trump was elected President of usa, investors rushed to buy dollars, causing the gold price to plunge to a three-week low. Stone X analyst Rhona Connell said: "Originally, the market expected election results to be controversial, but Trump's clear victory eliminated this uncertainty, reducing risks. Trump's election resulted in a strong rise in the dollar, and the combination of the two caused the gold price to fall."
Trump sparks a rally in the US dollar! US stocks and bitcoin hit new highs, with the Dow rising 1500 points, small cap stocks surging, while US bonds and metals plummet.
Dow rises to the best level in two years, small cap index rises nearly 6%, banking stocks rise over 10%, oil, steel, and crypto stocks surge, European and American solar stocks all collapse, Trump media technology rises by almost 35% before closing up by about 6%, Tesla rises by nearly 15% to a two-year high, Qualcomm rises by 10% after the bell. Chinese concept stocks narrow their declines, NIO Inc and Zeekr drop over 5%. 10-year US Treasury yield rises the most by 20 basis points nearing 4.48%, reaching a four-month high along with a 1.7% rise breaking 105 in the USD index, Bitcoin rises by 9% nearing $0.076 million, offshore RMB drops by a thousand points to below 7.20, a three-month low, Euro and Yen once fell by 2%. Gold drops over 3%, London copper drops over 4%.
GLD ETF Falls 3.0%
Deplay Cash And Reduce Hedges, Short Term Opportunities At Hand, Prepare For Long Term Opportunties