In the blink of an eye, Profit From Gold Crashes! - Kakiforex | Forex markets for the smart money. In the blink of an eye, Profit From Gold Crashes! In the blink of an eye, Profit From Gold Crashes!

April 30, 2021

In the blink of an eye, Profit From Gold Crashes!

 Gold reverted to gains following the Federal Reserve’s (Fed) policy decision, as U.S. bond yields rose to a weekly high of 1.68% following positive U.S. economic data.


Earlier, gold prices soared to $ 1,789 an ounce after the Fed kept interest rates and its bond -buying program unchanged at the April session policy meeting.


Moreover, the Fed also dismissed speculation to reduce earlier bond -buying easing even though inflation has shown an increase, signaling the central bank will continue with loose monetary policy.


However, the gains made by gold trading were short -lived, after the precious metal plunged lower following the publication of US economic data.



Gross Domestic Product (GDP) increased by 6.4% in the first quarter of this year from 4.3% recorded in the previous quarter, driven by a significant increase in consumer spending.


These strong readings have pushed bond yields and the U.S. dollar soaring higher and sinking the yellow metal lower in the New York session.


This can be seen from the XAU/USD price chart which measures the value of gold against the US dollar plunged around 340 pips to the $ 1,755 price level from the previously recorded increase.


In today's Asian session, the precious metal gold traded around $ 1,767 per ounce.