{"id":31112,"date":"2026-03-19T12:00:46","date_gmt":"2026-03-19T12:00:46","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/31112\/"},"modified":"2026-03-19T12:00:46","modified_gmt":"2026-03-19T12:00:46","slug":"amid-the-feds-hawkish-stance-gold-hits-its-lowest-since-february-stabilising-around-the-4700-mark","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/live-updates\/31112\/","title":{"rendered":"Amid the Fed\u2019s hawkish stance, gold hits its lowest since February, stabilising around the $4,700 mark"},"content":{"rendered":"Gold fell to a new low since 6 February, dropping towards $4,700 in early European trading. The move followed a stronger US Dollar after the Federal Reserve signalled a hawkish policy path.\n\nUS data showed the headline Producer Price Index rose 0.7% in February after a 0.5% rise in the prior month. The annual PPI rate increased to 3.4%, the largest 12-month rise since February 2025.\n\n

Fed Outlook And Geopolitical Risks<\/h3>\nThe Fed raised its year-end PCE inflation outlook, citing risks from higher energy prices linked to the Iran war. It also lifted its 2026 growth forecast and projected one rate cut this year and one in 2027.\n\nIn the Gulf, energy infrastructure was attacked after Israeli strikes on Iran\u2019s South Pars gas field, described as the world\u2019s largest. President Donald Trump warned of possible large-scale retaliation tied to energy assets, while reports said the US was weighing an expanded military campaign and the deployment of thousands of troops to West Asia.\n\nMarkets also awaited policy updates from the SNB, BoE and ECB, alongside US Weekly Initial Jobless Claims and the Philly Fed Manufacturing Index. The report was corrected on 19 March at 09:02, stating the prior month\u2019s PPI was 0.5%, not 0.3%.\n\nTechnically, price broke below the $5,040\u2013$5,035 area, which combined a 200-period 4-hour EMA and the 38.2% retracement. RSI was 27.86, with resistance at $4,919.61, then $5,037.25, and support at $4,843, $4,801.97 and $4,634.48.\n\nWith gold breaking below key support levels to touch $4,700, the immediate pressure is clearly to the downside, driven by a hawkish Federal Reserve. The CME’s FedWatch Tool is now pricing in an 85% probability of rates holding steady through the June meeting, reinforcing the dollar’s strength against non-yielding assets. This suggests that traders could consider buying put options or establishing bear put spreads to capitalize on further weakness towards the $4,634 technical level.\n\n

Strategy Considerations For Volatility<\/h3>\nWe believe the primary weight on gold is the Fed’s commitment to fighting inflation, which, according to the latest 3.4% annual PPI reading, remains persistent. We saw a similar pattern back in 2022 and 2023, where gold initially struggled against aggressive Fed rate hikes before geopolitical factors eventually triggered a reversal. A sustained break below the $4,800 psychological and technical support could embolden sellers to push for a deeper correction in the near term.\n\nHowever, the escalating conflict in the Persian Gulf introduces significant uncertainty and makes outright short positions risky. Brent crude futures have already surged past $130 a barrel this week, the highest since the supply shocks of late 2025, signaling that markets are taking the threat of a wider conflict very seriously. This environment warrants considering cheap, out-of-the-money call options as a hedge against a sudden safe-haven rally should the situation deteriorate further.\n\nThe opposing forces of monetary policy and geopolitics are causing volatility to spike, which presents its own opportunity. The Cboe Gold Volatility Index (GVZ) has jumped to over 30, a level we haven’t consistently seen since the banking turmoil in the spring of 2025. Traders who expect a large price swing but are unsure of the direction could look at long straddle or strangle strategies to profit from this heightened volatility.\n\nLooking ahead, policy decisions from the Bank of England and the European Central Bank will be critical, as any dovish pivot from them would likely strengthen the US dollar further. Upcoming US data on jobless claims will also offer a fresh look at the economy’s health. Given these cross-currents, implied volatility in gold options will likely remain elevated, making it expensive to hold long-dated positions through these key events.\n\nCreate your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b>\n

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Start trading now – Click here<\/a> to create your real VT Markets account <\/strong> <\/p>\r\n","protected":false},"excerpt":{"rendered":"

Gold slid toward $4,700 as hawkish Fed, stronger dollar and surging PPI pressured prices amid tensions.<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46],"tags":[],"class_list":["post-31112","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/31112","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=31112"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/31112\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=31112"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=31112"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=31112"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}