Pepperstone logo
Pepperstone logo
  • English (UK)
  • Ways to trade

    Pricing

    Trading accounts

    Trading hours

    24-hour trading

    Spread betting vs CFDs

    Maintenance

  • Trading platforms

    Trading platforms

    TradingView

    MetaTrader 5

    MetaTrader 4

    Pepperstone platform

    cTrader

    Trading integrations

    Trading tools

  • Markets

    Markets to trade

    Forex

    Shares

    Indices

    Commodities

    Currency Indices

    Dividends for Index CFDs

    Dividends for Share CFDs

    CFD Forwards

    ETFs

  • Market analysis

    Market news

    Navigating Markets

    The Daily Fix

    Meet the Analysts

  • Learn to trade

    Trading guides

    CFD trading

    Spread betting

    Forex trading

    Commodity trading

    Stock trading

    Technical analysis`

    Day trading

    Scalping trading

    Candlestick patterns

    Upcoming IPOs

    Gold trading

    Oil trading

    Webinars

  • Partners

  • About us

  • Help and support

  • Professional

  • English (UK)

Analysis

Gold

Gold traders 360-degree playbook

Chris Weston
Chris Weston
Head of Research
11 Mar 2020
Share
In this week’s gold traders report we focus on the massive move higher in real US Treasury yields in the past two days and the impact this has had on the USD, which coincidently had its best day since 2016. USDJPY and EURUSD have been well traded in this USD move, with USDJPY moving into 105.92 helped by the move in Treasuries and the S&P 500.

Today is a new day though and we’re seeing sellers of risk emerge here in Asia, with S&P 500 futures -1.5%, with Asian equities lower (the ASX 200 -1.3%) and traders are back buying bonds, so the USD is offered. Given these moves, gold (USD) is finding buyers again – as goes the S&P 500, as too goes gold.

We should consider the large range of measures which have disclosed in the past 24 hours, both on a fiscal and monetary level and if equities are going to rally, then it had to do so given the capacity of this news. As I say, the moves have been short lived but we need to adjust our expectations of movement – 1.5% is the new 0.3%.

Measures that have been proposed:

  • Trump speaking to Republicans about taking the payrolls tax to 0% for 12 months, but it would only kick in after the November elections – a massive politicising of the virus – seems very optimistic given how stimulatory it would be
  • Italy are discussing a E16b stimulus / E25B to counter the virus – PM Conte calls on ECB to do “whatever it takes” to offset the fallout from the virus
  • ECB president Christine Lagarde ordered a ‘rapid fiscal response’ from EU govts – the market expects a 10bp cut from the ECB, as well as a range of other measures.
  • In Australia, talk is we should hear a $10b fiscal plan from Scott Morrison shortly
  • Indonesia govt suggesting that they are working on more stimulus
  • The Abe government talking about a second fiscal stimulus (in Japan) of Y430.8b
  • RBNZ Orr putting all policy on the table – rate cuts, FX intervention, QE – he just doesn’t think NZ needs it
  • Bank of Korea indicated they would intervene in FX markets if needed – also interesting that the daily rate of new infections in Korea dropped to the lowest level in 11 days
  • BCB (Brazil CB) announced they were offering 20k FX swap contracts at auction
  • Mexico CB increased intervention levels from 20b to 30b

I’ll touch base on the ECB meeting tomorrow and how EU assets may trade given expectations.

Ready to trade?

It's quick and easy to get started. Apply in minutes with our simple application process.

Get startedSubscribe to The Daily Fix

The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our clients.

Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.

Other Sites

  • The Trade Off
  • Partners
  • Group
  • Careers

Ways to trade

  • Pricing
  • Trading accounts
  • Pro
  • Trading hours

Platforms

  • Trading Platforms
  • Trading tools

Markets and Symbols

  • Forex
  • Shares
  • ETFs
  • Indicies
  • Commodities
  • Currency indicies
  • CFD forwards

Analysis

  • Navigating Markets
  • The Daily Fix
  • Pepperstone pulse
  • Meet Our Analysts

Learn-to-trade

  • Trading guides
  • Videos
  • Webinars
Pepperstone logo
support@pepperstone.com
+442038074724
70 Gracechurch St
London EC3V 0HR
United Kingdom
  • Legal documents
  • Privacy policy
  • Website terms and conditions
  • Cookie policy

© 2025 Pepperstone Limited 
Company Number 08965105 | Financial Conduct Authority Firm Registration Number 684312

Risk warning: Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.8% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

Trading derivatives is risky. It isn't suitable for everyone and, in the case of Professional clients, you could lose substantially more than your initial investment. You don't own or have rights in the underlying assets. Past performance is no indication of future performance and tax laws are subject to change. The information on this website is general in nature and doesn't take into account your or your client's personal objectives, financial circumstances, or needs. Please read our legal documents and ensure you fully understand the risks before you make any trading decisions. We encourage you to seek independent advice.

Pepperstone Limited is a limited company registered in England & Wales under Company Number 08965105 and is authorised and regulated by the Financial Conduct Authority (Registration Number 684312). Registered office: 70 Gracechurch Street, London EC3V 0HR, United Kingdom.

The information on this site is not intended for residents of Belgium or the United States, or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.