Choose country & language:

Gold plummets after Fed announcement

Home >  Daily Market Digest >  Gold plummets after Fed announcement

Written by:
Myrsini Giannouli

27 January 2022
Share the article

Gold reached a two-month high of $1,853 per ounce on Tuesday, as investors sought safe-haven assets, threatened by the Russia-Ukraine crisis and the stock market turmoil at the beginning of the week. 

Gold could not hold onto its gains in the wake of the Fed’s announcement of a rate hike though, and plummeted to below $1,815 per ounce. Fed Chair Powel’s speech was especially hawkish, signaling a rate hike at the next Fed policy meeting in March, and not ruling out hikes at consecutive meetings. The US dollar and treasury yields climbed after Powel’s speech, putting pressure on gold. The appeal of gold as an investment diminishes when interest-bearing assets, such as treasury yields, rise.

If the price of gold rises again, it may find resistance at $1,829 per ounce and further up at $1,877 per ounce, while if the price of gold decreases, the $1,800 level may provide support, while further down, support may be found at 1,782 per ounce. This week, gold price is expected to show some volatility, due to the mounting tensions between Russia and Ukraine. 

XAUUSD 1hr chart

TRADE GOLD

The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.

Written by:
Myrsini Giannouli

Share the article:

Latest news

The dollar remains strong on robust US economic data

Myrsini Giannouli 28 September 2022

Gold prices pressured by a strong dollar

Myrsini Giannouli 28 September 2022

Oil prices edge higher on supply concerns

Myrsini Giannouli 28 September 2022

Cryptocurrencies volatile amid market turbulence

Myrsini Giannouli 28 September 2022

Why TopFX

10-years

10-years

industry presence
as a Liquidity Provider

Spreads

Spreads
from 0.0 pips

and reliable execution

Segregated

Segregated

client funds

First-class

First-class

customer support

Open your Live Account in 3 Steps

Step 1

Fill in the registration
form and click
"Create account".

Step 2

Once you are in the client secure area, please proceed with uploading your Proof of Identity and Proof of Residence.

Step 3

When your live account is approved, you can deposit funds and start trading on your chosen platform!