Gold (XAU/USD) mirrors USD Index, price gap on Natural Gas [Video]

Brad Alexander FX Large Limited

No, you are not looking at a reflection on a pond.

This is how Gold is inversely correlated to the USD with a four-hour chart on the USD Index vs a four-hour chart on Gold.

The rise in price action on Gold is a direct result of a weaker USD.

Even last week’s very good Non-Farm Payrolls number could not stop the weak run of the USD.

In fact, it was a perfect Counter-Trend Price Action trade with most USD pairs.

For example, price action on GBPUSD fell almost 160 pips into this key level of support and a long trade was there for the taking with over 200 pips available on the upside.

The only real US news available this week is a PMI but we await an Australian Interest Rate decision and GDP, a Canadian Interest Rate decision and a PMI, and European Retail Sales, Employment and GDP.

Natural Gas has become quite famous for its gaps so let’s see if price action can fill this one.

We will wait for a selling opportunity as we don’t want to trade against the trend.

If price action fills the gap and reaches a key level, we will see it tomorrow in our Technicals video.

If you read our monthly blog you would have seen that Asian equities are bullish thanks to better news about Chinese COVID lockdowns.

Here, however, is an opportunity to buy the dip on the Nikkei on a bearish pullback.

Author

Brad Alexander

FX Large Limited

Brad became fascinated with the Currency Markets from a young age and researched fundamental analysis.

EUR/USD regains balance, targets 1.1800

EUR/USD has lost a bit of momentum after its earlier push higher and is now attempting to reclaim the key 1.1800 barrier on Monday. In the meantime, investors remain focused on the evolving US–EU trade relationship after President Trump’s announcement of sweeping global tariff hikes.

GBP/USD recedes from tops, back to 1.3500

GBP/USD is extending its move higher on Monday, meeting some resistance around 1.3530 on the back of the widespread bearish tone in the US Dollar amid ongoing uncertainty around tariffs. For now, traders are watching overall risk sentiment and central bank rhetoric for the next directional cue.

Gold advances to four-week highs, focus is on $5,200

Gold is holding onto its bullish tone on Monday, hovering near monthly highs well above the $5,100 mark per troy ounce. Fresh trade-war concerns, coupled with rising geopolitical tensions in the Middle East, are keeping demand for the yellow metal well on the rise.

Crypto Today: Bitcoin, Ethereum, XRP intensify sell-off as tariff uncertainty weighs

Bitcoin, Ethereum and Ripple are trading amid increasing selling pressure at the time of writing on Monday, as investors react to fresh trade uncertainty over US President Donald Trump’s push for more tariffs.

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

XRP recovers slightly as bearish sentiment dominates crypto market

Ripple is rising above $1.40 at the time of writing on Monday amid fresh tariff-triggered headwinds in the broader cryptocurrency market. The sell-off to $1.33, the token’s intraday low, can be attributed to macroeconomic uncertainty, geopolitical tensions and risk-averse sentiment among other factors.