Fed's Impact on Gold: The dollar is heavy for metals.
Hey Traders, in today's trading session we are monitoring XAUUSD for a selling opportunity around 2057 zone. Gold is trading in a downtrend and currently is in a correction phase in which it is approaching the trend at 2057 support and resistance area.
Recent remarks by the Federal Reserve, particularly the denial of potential rate cuts in March by Fed Chair Powell, have contributed to strengthening the dollar. This stance from the Fed has introduced a bullish sentiment for the dollar in the market, impacting the price of gold.
It's important to note the negative correlation between the dollar and gold. Typically, when the dollar strengthens, the price of gold tends to decrease, and vice versa. This negative correlation is rooted in the fact that gold is denominated in dollars, so a stronger dollar makes gold more expensive for investors using other currencies, thereby reducing demand and consequently its price.
Trade safe, Joe.
Recent remarks by the Federal Reserve, particularly the denial of potential rate cuts in March by Fed Chair Powell, have contributed to strengthening the dollar. This stance from the Fed has introduced a bullish sentiment for the dollar in the market, impacting the price of gold.
It's important to note the negative correlation between the dollar and gold. Typically, when the dollar strengthens, the price of gold tends to decrease, and vice versa. This negative correlation is rooted in the fact that gold is denominated in dollars, so a stronger dollar makes gold more expensive for investors using other currencies, thereby reducing demand and consequently its price.
Trade safe, Joe.
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Decent data for USD at the same time heavy on gold for the correlation
Decent data for USD at the same time heavy on gold for the correlation
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