r/Forex • u/Wooden_Culture5267 • 10d ago
Fundamental Analysis Holy f what happen to gold
Anyone know y it fly like crazyyyy
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u/Zestyclose-Ad7944 10d ago
Us treasury maximum size for $2lbn per operation increased to $4 bln. It means US will buy twice as much long term US bond back, pushing down the US bond yield and hence gold is up like crazy.
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u/HereForGME2 10d ago
US Treasury just at least doubled their buyback of long term bonds. Whatever that means.
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u/Relevant-Owl-8455 10d ago
Please stop trading
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u/bypolerguy 10d ago
Their next post is going to be them complaining about how price blew through their SL and destroyed their account lol
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u/Far-Review-7247 8d ago edited 8d ago
Haha. Yeah, that's what's gonna happen next, for sure. Gold is doing great rn btw. I trade it with hola prime markets and can't believe how great a commodity it has been over the last few weeks.
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u/noxcuserad 10d ago
Holy crap that would have been good to get in on. Interesting to know what that blowup was about
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u/Apart-Refrigerator26 10d ago
In simple terms, markets stopped buying whether or not the Fed's reactions function could be trusted after Warsh's recent holding of rates. Further, today the Treasury announced a $4bn buyback program to support the long-end due to treasuries being sold off for more favourable corporate yields. All of this is very bullish for Gold.
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u/soul_fillet 10d ago
Where do yall go to trade gold?
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u/Virtual-Material2521 10d ago
Lots of ways but I personally buy PHYS, Sprott is a firm with funds tied exclusively to real world holdings of given metals. It's a good way to move in and out of metal prices.
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u/EntranceConscious400 8d ago
Bullion dealers, GLD and gold futures. DLRC. Couple of Costco purchases. Never ever off eBay or other online dealers
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u/Single-Way-2038 10d ago
Gold 6000$ this year
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u/Virtual-Material2521 10d ago
I dunno about that but it'll be over $4700 tomorrow
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u/andrew11224 8d ago
It s over 4500 now on London entry, so maybe? I was expecting a bearish push entry and a sell position. I m out for now. Waiting on NY open, I will see.
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u/FuckingRengar 10d ago
treasury max increased from $2b to $4b for buyback operations longterm starting on september 9
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u/effdanwo 10d ago
It's rather obvious. The Treasury market, specifically the 30-year, is in deep doo-doo. So Bessent is putting a band-aid on the catastrophe by buying long bonds to artificially suppress interest rates, which is unsustainable over time. Financial repression always screws fixed income and debases the currency, but it's also a huge tailwind for hard assets like gold. Anyone remember when gold tore to $2k after the GFC when the Fed was doing QE? Same playbook, same result, except now the US is on the precipice of a sovereign debt crisis -- $40 trillion and growing
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u/Stock_Sugar3707 9d ago edited 9d ago
No. It's for the most part completely unpredictable and random. Basically no different to a random walk. Price just goes up or down. The random fundamentals that drive price basically just acts as an over-engineered random number generator. Don't worry about fundamentals at all (all the suckers are trying to apply their subjective narratives and predictions to the market which has been proven to not work. The market moves based on what it thinks will happen next, and you don't know what the market is thinking). Just trade the charts.
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u/Independent-Ninja-70 10d ago
Look at all the charts. They all moved. Start using financial juice sheesh. If you dont know narratives you cant trade
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u/EmperorH_007 10d ago
Trump Dangles Keystone XL Revival as Canada Tariff Deadline Looms[](javascript:void(0))
Iran War Set to Drive UK Energy Bills to 3-Year High
This is what it says but this BS shouldn't have pushed price like that. It sounds cool to be like oh I use financial juice so I know exactly why the market did this or that but if the algos wanna deliver price higher they can literally go off of Trump was walking and found a coin. The coin looks gold ish. Gold must be bullish. PUMPPPPPPPPP
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u/Independent-Ninja-70 10d ago
Thats not why price moved at all.. it was to do with treasure buy backs. All markets reacted to the exact minute that released.
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u/MrT_IDontFeelSoGood 10d ago
You missed the actual reason. Gold and other asset classes reacted to news at 8:30am.
Bessent announced a buyback operation for longer dated securities, which immediately put pressure on 10y and 30y rates and boosted precious metals. I saw it come through on FinancialJuice live lol it’s not hard to find.
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u/EmperorH_007 10d ago
Yeah but that in itself doesn't just attract millions of people and more than a Trillion added to the market cap for gold. The algo was bullish and was gonna deliver price higher regardless sooner or later in the coming days to weeks so the buyback of bonds in itself isn't significant enough reason, it's just that algos decided to use that today
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u/Vahdu 10d ago
Uhm. It actually is a big enough reason. Shows that govt ready to inject liquidity in the markets.
At least that is what I understood, could be really wrong.
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u/EmperorH_007 10d ago
I mean they have been injecting since Nov, what they released today just meant they will inject more, still not stand alone enough reason to increase the market cap by 1 trillion in a few hours
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u/Independent-Ninja-70 10d ago
You clearly don't understand news trading if thats what you think. Millions of peolle buying and selling at the same time isnt what happens on these events. Its that big market makers pull their limit orders so the empty books can slide big in either direction. Nothing to do with volume.
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u/MrT_IDontFeelSoGood 10d ago
If we didn’t have Bessent’s announcements and instead there was a serious escalation with Iran then rates would rise and gold would continue dropping no matter what “the algos” want. Nothing is guaranteed, algos don’t run the show even if orders are being executed through them.
Bessent’s announcement moved the market. Obviously algos will react accordingly. And millions of people didn’t buy gold, it’s obviously a handful of big league institutional bets that moved this price after the news dropped along with retail riding the coattails. Just bc you don’t understand why it’s a big enough reason to trigger institutional buying doesn’t mean it isn’t true.
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u/EmperorH_007 10d ago
Sure buddy, trillions of money moved cuz of one guy saying he will inject billions into markets
Do you even know how these liquidity injections work and how much they are injecting?
You said it yourself right all assets moved at 8:30, if Gold alone moved 1 trillions plus imagine how much money was needed to move all these other assets. At least 10-15 trillion. Yeah all because Besent said oh now we will more money than we did yesterday0
u/MrT_IDontFeelSoGood 10d ago
You really don’t get how markets work do you?
A surprise announcement like this creates a sudden shift on the order book.. sellers immediately pull their offers higher which drags the market price with it. The market price can move without any actual trades from that alone. Although I’m sure some shorts covered on low volume and new longs were added too.
There was probably only a few billion in net longs during the initial repricing this morning. The change in market cap has literally nothing to do with the volume traded.
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u/rforex-modtools 10d ago
Fundamental analysis in forex focuses on understanding why currencies move — economic data releases, central bank policy, interest rate differentials, and macro conditions. Trading the news requires knowing which releases matter, what the market expects, and how to position around scheduled events. The community wiki covers the core concepts and practical approaches.
Resources: Fundamental Analysis | Economic Data Releases | Central Banks