Correlation between the European currency and gold | 07 January 2022

07 January 2022, EUR/USD

EURUSD trading plan:

Gold prices slid to a two-week low, pressured by rallying U.S. Treasury yields after the Federal Reserve signaled quicker increases to interest rates. If the movement in Treasury yields goes a lot higher in the short term, that is going to be very disruptive for gold trade. Gold, a non-interest-paying asset, tends to fall out of favor among investors when interest rates increase. Benchmark 10-year yields rose to their highest level since March last year. This is a negative signal for the European currency, since the euro correlates with gold.

Investment idea: sell 1.1331 and take profit 1.1269.

David Johnson
Analyst of «FreshForex» company
Agree with the review?
Traders' opinion:
Close
Log in
Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with accessing Client Area. How to enable cookie .
manager photo manager photo
Online-support
We will be pleased to answer any questions you may have

Write

Get bonus