XAU/USD is surging higher in the last four days and is up around 1% on the day. Falling US Treasury yields have fueled the Gold price higher as the market is scaling out for any 50 bps rate hike possibility for the March FOMC Meeting.
XAU/USD benefited amid the softer US Dollar earlier in the Asian session due to the Federal Reserve (Fed) and the US Treasury intervening in the banking system to rescue the Silicon Valley Bank (SVB) and Signature Bank.
Given the fact that surging borrowing cost across and United States (US) is denting financial health, as a result, the market has encountered the SVB fallout.
XAU/USD is showing some strong upward momentum in the wake of falling yield since Gold price is inversely correlated with US Treasury yields – as Gold is sensitive to the shorter end of the yield curve.
Gold price is looking to break above March’s high at the $1,894 mark. A convincing break above will lead the price toward the $1,900 key psychological mark. Any downside will likely be capped around Monday’s low at $1,866.
Recommendations for trading gold:
Sell 1890 - 1895
Stop loss: 1900
Take profit 1: 1880
Take profit 2:1875
Take profit 3: 1870
Buy 1853- 1854
Stop loss: 1851
Take profit 1: 1863
Take profit 2:1869
Take profit 3: 1872
Note: Always set TP and SL in all trading cases
XAU/USD benefited amid the softer US Dollar earlier in the Asian session due to the Federal Reserve (Fed) and the US Treasury intervening in the banking system to rescue the Silicon Valley Bank (SVB) and Signature Bank.
Given the fact that surging borrowing cost across and United States (US) is denting financial health, as a result, the market has encountered the SVB fallout.
XAU/USD is showing some strong upward momentum in the wake of falling yield since Gold price is inversely correlated with US Treasury yields – as Gold is sensitive to the shorter end of the yield curve.
Gold price is looking to break above March’s high at the $1,894 mark. A convincing break above will lead the price toward the $1,900 key psychological mark. Any downside will likely be capped around Monday’s low at $1,866.
Recommendations for trading gold:
Sell 1890 - 1895
Stop loss: 1900
Take profit 1: 1880
Take profit 2:1875
Take profit 3: 1870
Buy 1853- 1854
Stop loss: 1851
Take profit 1: 1863
Take profit 2:1869
Take profit 3: 1872
Note: Always set TP and SL in all trading cases
