SniperFx

Archives

  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • September 2022
  • August 2022
  • January 2022
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019

Categories

  • Analysis
  • Bonds
  • Crypto
  • Forex
  • Forex Trading
  • Ideas
  • Investing
  • News
  • Stocks
  • World
Subscribe
SniperFx
SniperFx
  • Bonds
  • Crypto
  • Forex
    • Forex Trading
  • Ideas
  • Investing
  • Stocks
  • World

Gold Price Forecast XAUUSD collapses below $1950 as US bond yields aim higher

  • admin
  • March 22, 2023
  • Gold price drops on risk-appetite improvement, and US Treasury bond yields rising.
  • US Treasury bond yields rise, with 10-year TIPS, a proxy for real yields advancing above 1.30%.
  • The Federal Reserve will commence its two-day monetary policy meeting, expected to deliver a 25 bps rate increase.

Gold price is tumbling across the board, down more than $30.00 or 1.59%, as US Treasury bond yields rise, while risk appetite improvement dented Gold’s demand. Hence, US equities climb moderately as the Federal Reserve’s Open Market Committee (FOMC) meeting begins soon. At the time of writing, XAU/USD is trading at $1947.26 after hitting a daily high of $1985.08

Gold price tumbles on high US Real Yields, and traders booking profits

Traders’ fears calmed in the last 48 hours after the UBS takeover of Credit Suisse, and  US banks continued to try to stabilize First Republic Bank. The Federal Reserve (Fed) would begin its March monetary policy meeting, with traders expecting the Fed to raise rates by 25 bps as Powell and Co. continued their efforts to curb stubbornly high inflation.

The XAU/USD retreated most of its gains after reaching a YTD high on Monday at $2009.75. Since then, the yellow metal plunged 3.09%, as traders apparently booked profits ahead of the FOMC’s meeting.

Money market futures anticipate an 83.4% chance for a quarter percent increase in the Federal Funds Rate (FFR), according to CME FedWatch Tool. However, there is still uncertainty around the potential outcome of Fed Chair Jerome Powell’s press conference, which could cause instability in financial markets.

Another reason for XAU/USD’s fall is that US Treasury bond yields are climbing. The US 10-year Treasury bond yield is 3.58%, up nine bps. The 10-year Treasury Inflation-Protected Securities (TIPS), a proxy for US Real Yields, stands at 1.351% after tumbling as low as 1.142% on March 16.

In the meantime, the US Dollar Index, a gauge of the buck’s value against six peers, is trimming some of its earlier losses after hitting a low of 103.00, down 0.03%, at 103.274.

XAU/USD’s daily chart portrays a bullish bias in the yellow metal. However, price action in the last three days could form an evening star candlestick chart pattern. This means that Gold can drop in the near term. The first support would be the March 15 daily high turned support at $1937.31, followed by the $1900 barrier. Once cleared, the 20-day Exponential Moving Average (EMA) at $1892.89 is next, followed by the 50-day EMA at $1867.89.

admin

Previous Article

Forex technical analysis and forecast Majors, equities and commodities

  • admin
  • March 22, 2023
View Post
Next Article

Prince Harry ‘ultimate nightmare’ came to life during COVID in Canada

  • admin
  • March 22, 2023
View Post
You May Also Like
View Post
  • Bonds

AUDUSD slides back closer to monthly low, bears now await break below 0.6600

  • admin
  • May 23, 2023
View Post
  • Bonds

AUD/USD clings to gains above mid-0.6600s as traders keenly await Powell’s speech

  • admin
  • May 21, 2023
View Post
  • Bonds

Bonds Say Run, Stocks Say Don’t

  • admin
  • May 8, 2023
View Post
  • Bonds

Ecuador frees cash for Galapagos conservation with $1.6 billion bond buyback

  • admin
  • May 6, 2023
View Post
  • Bonds

Stocks Vs. Bonds Which Is The Better Investment

  • admin
  • May 3, 2023
View Post
  • Bonds

Asian bonds to lure more investors amid rate cut buzz

  • admin
  • May 1, 2023
View Post
  • Bonds

Natural Gas Forecast Continues to See Downward Pressures

  • admin
  • April 29, 2023
View Post
  • Bonds

MATIC’s Price Is Currently Resting on a Key Support Level

  • admin
  • April 20, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Categories
  • Analysis (33)
  • Bonds (70)
  • Crypto (90)
  • Forex (106)
  • Forex Trading (64)
  • Ideas (57)
  • Investing (61)
  • News (121)
  • Stocks (113)
  • World (200)
Recent Posts
  • ISS backs Toyota shareholder proposal on climate disclosure
  • Gold Prices at Risk of Deeper Correction on Surging Real Yields, USD Strength
  • US Dollar Weekly Outlook Will US Debt Ceiling Deal and Jobs Report Boost DXY Further
  • BTC’s Network Activity Has Started Recovering From Its May Lows
  • USDCHF double three Elliott Wave advance and next blue box area
SniperFx
  • Home
  • About Us
  • Contact
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
Forex & Crypto Updates

Input your search keywords and press Enter.