Gold Plunges, Yen Crosses Lead Tentative Risk Aversion Trend Shift
The top story for the opening session of the trading week was gold's incredible $135 drop. A move of this magnitude taps into discussion of stability and market functioning as much as it does traditional fundamentals. However, looking behind the headlines of a record-breaking move for the metal, we have a development that can present far more expansive implications for the broader financial markets. Substantial drops from the yen crosses, S&P 500, commodities and sovereign bond yields suggests that systemic risk aversion winds are picking up. We discuss both gold and risk trends as well as their implications for trading in today's video.
Market conditions change, and our strategy should reflect those changes. We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts.
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