{"id":49477,"date":"2026-03-19T16:50:40","date_gmt":"2026-03-19T16:50:40","guid":{"rendered":"https:\/\/www.vtmarkets.com\/uncategorized\/hawkish-federal-reserve-lifts-the-us-dollar-pushing-gold-down-to-early-february-lows-near-4680\/"},"modified":"2026-03-19T16:50:40","modified_gmt":"2026-03-19T16:50:40","slug":"hawkish-federal-reserve-lifts-the-us-dollar-pushing-gold-down-to-early-february-lows-near-4680","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/live-updates\/hawkish-federal-reserve-lifts-the-us-dollar-pushing-gold-down-to-early-february-lows-near-4680\/","title":{"rendered":"Hawkish Federal Reserve lifts the US dollar, pushing gold down to early February lows near $4,680"},"content":{"rendered":"Gold (XAU\/USD) fell to about $4,680, its lowest level since early February, after dropping below $4,700. The move was linked to a stronger US Dollar and expectations that US interest rates will stay higher for longer.\n\nThe Federal Reserve\u2019s hawkish stance followed inflation data, including a rise in the Producer Price Index (PPI), plus upgraded economic projections. This reduced expectations for near-term rate cuts and weighed on non-yielding assets such as gold.\n\n

Geopolitical Risks And Safe Haven Demand<\/h3>\nGeopolitical tensions in the Middle East provided some support. Developments involving Iran, Israel and the United States, including attacks on key energy infrastructure, increased demand for safe-haven assets.\n\nOn the 4-hour chart, price moved well below the 50-period and 100-period Simple Moving Averages, which were above $5,050 and $5,120. A descending resistance trend line capped advances near $5,150, while the Relative Strength Index was near 15.\n\nResistance was marked around $4,967.00, with further resistance near $5,050. Support was noted at $4,655.28, and a break below it could open a move towards $4,402.23.\n\nThe sharp drop in gold is driven by the Federal Reserve’s firm stance, as we have seen the latest Consumer Price Index report for February 2026 come in at 3.1%, which is still well above the target. The market is now pricing in only one rate cut for this year, which is a significant shift from the three we expected back in January. This makes holding non-yielding gold less attractive compared to interest-bearing assets.\n\n

Trading Approach And Risk Management<\/h3>\nFor traders anticipating further declines, buying put options or establishing short positions in futures contracts could be a primary strategy. The technical charts suggest immediate support at $4,655, with a potential further slide toward the $4,402 level if bearish momentum continues. We should use these levels as near-term targets for any short-side plays.\n\nHowever, the ongoing geopolitical risks, particularly the recent escalation of tensions in the Strait of Hormuz, are providing a floor for the price. Any further disruption to energy supplies or direct military confrontation could trigger a flight to safety, causing a sharp rebound in gold. This is the main reason we must remain cautious about being overly bearish.\n\nGiven this uncertainty, a prudent approach involves using options to hedge against a sudden reversal. We are considering buying cheap, out-of-the-money call options to protect short positions from an unexpected price spike. This strategy allows us to maintain a bearish bias while limiting potential losses if the Middle East situation worsens.\n\nLooking back at 2025, we saw gold trade in a wide range, often getting sold off on hawkish Fed commentary only to be bought back on geopolitical headlines. This pattern is similar to what we observed during the aggressive rate-hike cycle of 2022-2023, where gold\u2019s upside was capped but its downside was cushioned. History suggests this tug-of-war between monetary policy and global risk is likely to continue.\n\nThe level of $4,967 remains the critical pivot point for us in the coming weeks. As long as gold fails to break and hold above this resistance, we should view any rally as a selling opportunity. A sustained move above that price would signal that the bearish pressure is fading and would force us to reconsider our short-term strategies.\n\nCreate your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b>\n

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Gold sinks to $4,680 on stronger dollar, hawkish Fed; Middle East tensions offer support, key levels watched.<\/p>\n","protected":false},"author":103,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-49477","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t