Correlation between the European currency and gold | 20 اكتوبر 2022

EURUSD trading plan:

Gold fell to the lowest in more than three weeks as Treasury yields and the dollar surged on expectations that the Federal Reserve will keep an aggressive pace of interest-rate hikes. The precious metal joined a selloff in equities and bonds as bearish sentiment took hold against a backdrop of high global inflation data. Gold traders were also on edge after Minneapolis Fed President Neel Kashkari’s remarks late Thursday that the US central bank can’t pause its tightening campaign once its benchmark rate hits 4.5% to 4.75% if “underlying” inflation is still accelerating. The Fed’s relentless monetary tightening to fight stubbornly high inflation led to a rally in the US dollar and higher bond yields. That has sent gold down about 20% from a March peak.

Investment idea: sell 0.9830 and take profit 0.9755.