Chat with us, powered by LiveChat

Elija el país y el idioma:

Close Icon

Gold prices skyrocket as the dollar crashes

Home >  Daily Market Digest >  Gold prices skyrocket as the dollar crashes

detail_image_market
author_img

Written by:
Myrsini Giannouli

09 November 2022
Share the article

Gold prices soared on Tuesday, climbing above the $1,675 per ounce resistance level, touching $1,717 per ounce. If gold prices decline, support may be found near $1,616 per ounce and further down at the 2020 low near $1,441 per ounce. Resistance may be found at around $1,729 per ounce.

Gold prices benefitted from the dollar’s decline on Tuesday, as US voters decided which party will control Congress. The dollar plummeted on Tuesday, with the dollar index dropping below 109.4. US Treasury yields also declined, although not as sharply as the dollar, retaining support from last week’s Fed rate hike. The US 10-year bond yield dropped from 4.20% to 4.15% on Tuesday, while the US 2-year bond yield fell from its 15-year high of 4.74% to below 4.66%.

The dollar has been trading in overbought territory and has been slipping since last week in anticipation of Tuesday’s US elections. The USD was boosted by the Fed’s rate hike but weak jobs data pushed the dollar down last week and the dollar’s sell-off continued this week. 

The US mid-term Congressional elections have been taking place on Tuesday and their outcome is as yet uncertain. So far, the election results are close, but US high inflation and fuel costs have weighed the Democratic party down. Concerns that the Democratic party might lose control of Congress in Tuesday’s elections, leading to political instability in the US, have pushed the dollar down. If the ruling party loses control of Congress, it will not be able to push forward its agenda.

Gold prices are under pressure by the shift of most major Central Banks towards a tighter monetary policy to combat rising inflation rates. Assets yielding interest become a more appealing investment compared to gold as interest rates rise. 

The US Federal Reserve voted to increase interest rates by 75 basis points at its monetary policy meeting last week. The Fed has so far increased interest rates by a total of 375 basis points this year, bringing its benchmark interest rate in a range of 3.75% to 4.0%. The FOMC Statement issued by the Fed contained a subtle change in forward guidance. The tone of the statement was more cautious than before, indicating that the Fed may be pondering slowing the pace of rate hikes. Market expectations are currently in favor of a 50-bps rate hike in December and a 25-bps hike in January. Rate hikes are expected to taper off in 2023 as the central bank moves into a stable interest rate.

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.

author_img

Written by:
Myrsini Giannouli

Share the article:

Latest news

main_image_market

Dollar steady ahead of key US economic data

Myrsini Giannouli 28 March 2024
main_image_market

Gold prices advance as US treasury yields decline

Myrsini Giannouli 28 March 2024

Oil prices rise on lower-than-expected US stockpiles

Myrsini Giannouli 28 March 2024

Bitcoin struggles to maintain key $70,000 level

Myrsini Giannouli 28 March 2024
Por qué TopFX
10-years
13+ años

presencia en el sector como proveedor de liquidez

Spreads
Spreads desde 0.0 pips

y una ejecución fiable

Segregated
Fondos de clientes

segregados

First-class
La mejor

atención al cliente

Abra su cuenta real en 3 pasos
Paso 1

Rellene el formulario
de registro y pulse en
"Crear cuenta".

Paso 2

Una vez esté en la zona segura de cliente, por favor proceda a cargar su prueba de identidad y prueba de dirección.

Paso 3

Cuando su cuenta real se apruebe, ¡puede depositar fondos y empezar a operar en la plataforma que quiera!

IMPORTANTE

El sitio web que está viendo ahora es operado por TopFX Global Ltd, una entidad regulada por la Autoridad de Servicios Financieros (FSA) de Seychelles con una Licencia de Agente de Valores No SD037 que no está establecida en la Unión Europea o regulada por una Autoridad Nacional Competente de la UE.

Si desea continuar, confirme que su decisión será por su propia iniciativa exclusiva, y que TopFX, o cualquier otra entidad dentro del Grupo no han realizado ninguna solicitud.

No volver a mostrar este mensaje

Cookies en TopFX

La página web de TopFX usa cookies para optimizar la experiencia del usuario.

Estas cookies pertenecen a las siguientes categorías: esenciales, funcionales y publicitarias. Las cookies publicitarias también pueden incluir cookies de terceros.

Administrar preferencias

Puede personalizar su selección de las cookies que desea aceptar.

  • Esenciales

    Estas cookies son necesarias para que la página web funcione correctamente y no se pueden desactivar.

  • Funcionales

    Las cookies funcionales permiten que la página web recuerde las preferencias de los usuarios y las elecciones que hagan en la página web, como el nombre de usuario, la región y el idioma.

  • Publicitarias

    Estas cookies se utilizan para rastrear a los visitantes en nuestros sitios web y mostrarle anuncios más relevantes. Las cookies de marketing también incluyen cookies de terceros de socios. Para obtener más información relacionada con la protección y recopilación de datos, consulte nuestra Política de privacidad y Divulgación de cookies.