Gold's dominance is prevailing over the US dollar right now!

Muhan_F1 Cập nhật   
OANDA:XAUUSD   Vàng / Đô la Mỹ
The current situation with gold (XAU/USD) has seen some challenges in recent months due to the strengthening of the US dollar. This rise in the US dollar has often led to a decrease in the price of gold, impacting the sentiment in the market. However, there are signs that this trend may be changing, and gold is starting to regain its strength relative to the US dollar.

In the past couple of months, gold experienced a significant drop, driven by a sharp increase in the benchmark US Dollar Index. Despite the US dollar's substantial gains, gold managed to bounce back, indicating relative strength against the dollar. When gold falls less than the dollar rallies, it suggests that gold is outperforming. This is a positive sign, implying that speculators who were aggressively selling gold futures may be running out of steam, and a reversal in their positioning could lead to a significant rise in gold prices.

The relationship between the US dollar's performance and gold futures trading has been a key factor influencing gold's volatile price movements, particularly since the Federal Reserve started raising interest rates in early 2022. Typically, positive economic data leading to Fed rate hikes has supported a stronger dollar, which in turn has led to more selling in gold futures and a decrease in gold prices. However, this dynamic appears to be nearing its end, and gold may soon break free from this pattern.

It's worth noting that before the Fed began raising rates in 2022, gold had experienced a substantial rally, reaching close to all-time record highs. Despite a stronger dollar during that period, gold was performing well. However, as the Fed's rate-hike cycle gained momentum, gold faced significant selling pressure, primarily driven by extreme gold futures selling.

In September 2022, when sentiment in the gold market was very bearish, there were indications that the extreme selling pressure in gold futures was unsustainable. This led to the prediction that gold would experience a strong rebound, and this prediction turned out to be accurate. Gold rebounded significantly, signaling the potential for a new bull market.

The recent months have seen fluctuations in both gold and the US dollar, with gold showing resilience even in the face of a strong dollar surge. However, there have been moments when the dollar's strength triggered selling in gold futures, affecting market sentiment negatively.

Overall, the outlook for gold appears promising. The US dollar is currently overbought and overextended, and speculators' positioning in gold futures remains excessively bearish. These factors suggest that a reversal in the dollar's strength and a surge in gold prices could be imminent. Gold has the potential to achieve new all-time record highs, attracting more traders and investors and driving further gains. This situation is particularly beneficial for gold stocks, which could see substantial increases as gold's upward trend continues.
Bình luận:
The market is still in my prediction
Bình luận:
The market is moving in the right direction
Bình luận:
The market will continue to grow, everyone
Bình luận:
If the market has a lot of changes, I think it's just a rebound to gain momentum
Đóng lệnh: đạt mục tiêu:
This order has won. Great, excellent, wonderfull
Bình luận:
thank you
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