I am Savvy, Founder of Godman FX.
I trade Smart Money Concepts and I have harmonised my strategy into 2 simple things
IOF, Institutional Orderflow & My personally tweaked Entry Models.
Trading is not easy but it can be simplified, that's what I do for you.
All these ones no really concern me. As long as it's neither of NFP, FOMC nor CPI, I don't care about any fundamental analysis. TA alone can make you profitable.
THE US ECONOMY LOOKS STRONG.
THE DOLLAR IS AT A TWO-MONTH HIGH.
AND GOLD IS STRUGGLING.
Read that again...
Traders spent months waiting for the Fed to start cutting rates.
Now theyโre betting on MORE hikes.
Why?
Because the US economy is refusing to slow down the way they expected.
Strong manufacturing data has reignited inflation concerns.
A weak Treasury auction has pushed yields higher.
And the dollar is catching another bid.
Hereโs the part most traders missโฆ
GOOD economic news can be BAD news for gold.
A resilient economy gives the Fed more room to keep rates elevated.
Higher yields make interest-bearing US assets more attractive.
A stronger dollar makes gold more expensive for buyers using other currencies.
And gold? It pays no interest while you hold it.
Now add oil into the equation.
If supply disruptions push energy prices higher again, inflation becomes even harder to bring down.
That could keep rate expectations and yields elevated, adding to goldโs problems.
But if oil eases, inflation expectations cool and real yields start falling, the picture can change.
Stop trading gold off the scary headline.
Watch what that headline does to oil, Fed expectations, REAL yields and the dollar.
Thatโs where the next move starts.