(13/04/2024) Financial Market Weekly Review: Gold correction, strong US dollar, Bitcoin volatility, tension in the Middle East! | #Fed #GoldPrice #USD #Gold #Japanese Yen #Oil

According to reports from the FXWE Financial Community, a series of attention-grabbing events occurred in the financial market this week, which had a direct impact on various assets and investor sentiment. Here's a more detailed analysis of these events:
First, let's look at the gold market. Gold prices experienced a sharp correction over the weekend, falling sharply from its high of $2,429 to a close of $2,343. The sharp decline is believed to be the result of profit-taking by investors. They may have decided that the rally in gold prices was overdone and opted to exit the market. Nicky Shiels, head of metals strategy at financial institution MKS PAMP SA, pointed out that the large influx of funds into the market has led to a rather chaotic atmosphere.
Secondly, US inflation data triggered market concerns and reactions. The Consumer Price Index (CPI) in March exceeded expectations, with the overall inflation rate rising to 3.5% year-on-year and core CPI rising 0.4% month-on-month. The higher-than-expected performance of these data supported the US dollar and intensified the momentum of the US dollar index to break through the 106 mark. At the same time, Federal Reserve officials took a hawkish stance, which further boosted confidence in the dollar.
Third, the Bitcoin market has also experienced severe volatility. Bitcoin price fell to $66,600 with just one week left before the halving event. This has triggered concerns among investors about future trends and expectations of volatility, with some traders even suggesting halting trading until the halving event is over.
In addition, the geopolitical situation also has an impact on the market. Escalating tensions in the Middle East, with Iran threatening retaliation against Israel, have heightened geopolitical risks. U.S. President Biden said he expected Iran to launch an attack on Israel, but he also made clear his support for Israel.
To sum up, financial markets are in a volatile period, with investors facing challenges from increased market volatility and heightened geopolitical risks. In this case, investors need to pay close attention to market dynamics and adopt corresponding investment strategies to avoid risks and seek returns. That’s all for today.