Abstract：Gold fell heavily following hawkish remarks from the Federal Reserve's chairman.
XAU/USD bears throw in the towel near a critical support area.
The focus is on a significant correction back towards $1,830.
Update: Gold price is meandering near one-week lows of $1,813, as the demand for the US dollar remains unabated amid rising two-year Treasury yields. The two-year US rates spike to fresh 23-month highs of 1.192% as the Fed funds futures tumble on expectations of five rate hikes this year. Fed Chair Jerome Powell fanned hopes of March lift-off while opening doors for faster rate-hikes to tame inflation. In reaction to the hawkish Fed outlook, gold price corrected sharply from two-month peaks, having failed to find acceptance above the $1,850 mark.
Looking ahead, the US advance Q4 GDP and Durable Goods data will be eyed for fresh US dollar valuations, which will have a strong bearing on gold price.
At $1,820, Gold, (XAU/USD) is virtually flat in Tokyo following market volatility overnight. Jerome Powell surprised markets with a hawkish pivot, commenting that the Fed could raise rates at every meeting if need be.
Additionally, Powell said in the presser that the Fed could move faster and sooner than they did the last time which helped the US dollar to extend on pre presser gains as US 2-year yields jumped the biggest one day gain since 2020. The US dollar rose to a five-week high:
DXY M5 chart, US session
