Have you ever wondered what causes the market to rise and fall? You may have seen in my analysis that I always refer to the news, and yes, that’s the answer. In addition to technical analysis, news always plays a crucial role as a catalyst, driving stronger trends. Let’s explore more!
TOPIC: Identifying The News Groups That Strongly Affect Gold Prices
Not all news is important. Gold often fluctuates strongly due to the following factors:
-Interest rates & FED policies (FOMC, FED chairman’s speech)
-Inflation data: CPI, PCE, Core CPI
-USD strength: DXY index, employment report (NFP)
-Geopolitics: Conflict, war, financial crisis
➡️ If the news falls into these 4 groups, pay close attention.
đź’ˇ Understand the basic logic of USD and gold
🔼 When the USD strengthens (due to good news about the U.S. economy, the FED raising interest rates) → gold usually decreases.
đź”˝ When the USD weakens (bad news, the FED loosens, high inflation) → gold usually increases.
đźš« When there is instability (crisis, war, risk) → safe-haven money flows into gold.
➡️ By understanding this logic, you don’t need to memorize too much.
📢 Read the news in 3 steps
When the news is released:
-Compare the actual results with the forecast and previous period.
-Place gold in the logic above to speculate on the initial direction.
-Combine with the chart to find a reasonable entry instead of entering immediately when the news is released (avoid getting stopped out).
⭐️ Real example: OANDA:XAUUSD A strong rally to 3600 USD.
Cause: Non-Farm Payrolls (NFP) released on September 6.
đź“Š The data showed:
-Actual: 22K
-Forecast: 75K
-Previous: 79K
This is a strong bullish signal: the number of jobs created was much lower than expected, showing a weakening U.S. labor market → USD weakens → gold surges, providing a great buying opportunity.
đź“Ś In conclusion: Reading the news doesn’t have to be complicated. Just remember:
✅ Important news that affects gold.
✅ USD and gold are almost opposites.
✅ Always combine news + technical analysis for safe entries.
Now, it’s your turn to put the knowledge into practice. Please like this post if you understand everything and are looking forward to the next lessons, it will be a great encouragement for me.
Wishing you all the best on your way to becoming an expert!
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